PLI Scheme to Expand Domestic Advanced Chemistry Cell Capacity
ECONOMY & POLICY

PLI Scheme to Expand Domestic Advanced Chemistry Cell Capacity

The Ministry of Heavy Industries (MHI) is administering the Production Linked Incentive (PLI) scheme, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, approved in May 2021 with a total outlay of Rs 181 billion (Rs 181 bn) to establish 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity. The scheme aims to build domestic scale and resilience in battery storage supply chains while encouraging investment in the latest cell technologies. The PLI is designed to attract large domestic and international manufacturers through structured incentives linked to production and value addition.

Under Round-two bidding, one beneficiary, Reliance New Energy Battery Ltd, signed the programme agreement with MHI on 17 February 2025 to establish an ACC manufacturing facility of 10 GWh capacity. The scheme period for Round-two is seven years from the appointed date of 01.07.2025, with the first two years designated as a gestation period. The agreement reflects a phased approach to capacity building and commercial production timelines.

The scheme provides incentives based on quoted subsidy per kWh and on the percentage of value addition achieved on actual sales by manufacturers. Beneficiaries must achieve at least 25 per cent value addition within two years at the mother unit level and raise value addition to 60 per cent within five years from the appointed date. The policy is technologically agnostic and allocates higher support to superior technologies while allowing qualifying research and development expenditure to count towards investment criteria.

The programme is intended to reduce dependence on imported advanced chemistry cells by enhancing domestic manufacturing capabilities and competitiveness across the supply chain. The ministry conveyed these details in a written reply to the Rajya Sabha, setting out compliance timelines and incentive mechanisms for participating firms. Implementation will be monitored against value addition milestones and production targets to support orderly domestic capacity expansion.

The Ministry of Heavy Industries (MHI) is administering the Production Linked Incentive (PLI) scheme, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, approved in May 2021 with a total outlay of Rs 181 billion (Rs 181 bn) to establish 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity. The scheme aims to build domestic scale and resilience in battery storage supply chains while encouraging investment in the latest cell technologies. The PLI is designed to attract large domestic and international manufacturers through structured incentives linked to production and value addition. Under Round-two bidding, one beneficiary, Reliance New Energy Battery Ltd, signed the programme agreement with MHI on 17 February 2025 to establish an ACC manufacturing facility of 10 GWh capacity. The scheme period for Round-two is seven years from the appointed date of 01.07.2025, with the first two years designated as a gestation period. The agreement reflects a phased approach to capacity building and commercial production timelines. The scheme provides incentives based on quoted subsidy per kWh and on the percentage of value addition achieved on actual sales by manufacturers. Beneficiaries must achieve at least 25 per cent value addition within two years at the mother unit level and raise value addition to 60 per cent within five years from the appointed date. The policy is technologically agnostic and allocates higher support to superior technologies while allowing qualifying research and development expenditure to count towards investment criteria. The programme is intended to reduce dependence on imported advanced chemistry cells by enhancing domestic manufacturing capabilities and competitiveness across the supply chain. The ministry conveyed these details in a written reply to the Rajya Sabha, setting out compliance timelines and incentive mechanisms for participating firms. Implementation will be monitored against value addition milestones and production targets to support orderly domestic capacity expansion.

Next Story
Infrastructure Urban

Panasonic Showcases Connected Display Solutions

Panasonic Life Solutions India showcased its integrated display, projection, broadcast and communication technologies at Panasonic Tech Summit 2026 in New Delhi. Hosted through its System Solutions Division, the two-day event highlighted connected technology solutions for education, healthcare, retail, transportation, corporate offices and entertainment.The summit, themed ‘Turning Technology into Value’, featured experience-led zones covering QSR, retail, transit, corporate offices, healthcare, education, security, projection, home theatre and professional displays. Panasonic also introduc..

Next Story
Infrastructure Transport

Kapsch to Deliver India’s First C-ITS Project

"Kapsch TrafficCom will deliver India’s first Cooperative Intelligent Transport Systems project on a key expressway near New Delhi. The project will be implemented with Superwave Communication And Infrasolution Limited to demonstrate how connected mobility can improve road safety and traffic efficiency.The pilot will use real-time connectivity and AI-enabled situational awareness to support road users, especially in high-risk areas such as temporary work zones. Drivers will receive alerts on roadworks, maintenance vehicles, hazardous locations, traffic queues and temporary virtual signage di..

Next Story
Infrastructure Urban

Eurobond Net Profit Rises 44 Per Cent

Euro Panel Products, the parent company of Eurobond, reported a 44.13 per cent year-on-year rise in net profit for FY25–26. The company’s revenue from operations grew 18.91 per cent to Rs 503.20 crore, compared to Rs 423.18 crore in the previous financial year.The company’s full-year EBITDA stood at Rs 56.67 crore, marking a 31.82 per cent increase. Profit after tax rose to Rs 26.56 crore, while net worth increased 20.15 per cent to Rs 160.07 crore. Earnings per share for the year stood at Rs 10.84.Divyam Rajesh Shah, Whole Time Director and CFO, Euro Panel Products, said the company’s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->