India’s Battery Manufacturing Drive: Reliance Awarded 10 GWh Under Rs 18,100 Crore PLI ACC Scheme, Total Allocation Reaches 40 GWh

The Ministry of Heavy Industries (MHI) has signed a Programme Agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries Limited, awarding the company a 10 GWh capacity under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) battery storage.

The agreement, signed on Monday (17 February), came after a competitive global tender process and makes Reliance eligible for incentives under the Rs 18,100 crore PLI ACC scheme.

The signing marks another milestone in the implementation of India’s National Programme on Advanced Chemistry Cell (ACC) Battery Storage, which was approved by the Union Cabinet in May 2021.

The scheme aims to achieve a total domestic manufacturing capacity of 50 GWh.

With this latest allocation, 40 GWh of capacity has been awarded to four beneficiary firms.

In the first round of bidding in March 2022, three companies were allocated a combined capacity of 30 GWh, with programme agreements signed in July 2022.

According to MHI officials, the PLI ACC scheme is designed to promote local value addition while ensuring that battery manufacturing costs in India remain competitive.

The scheme allows beneficiary firms to select the most suitable technology and raw materials for establishing state-of-the-art ACC manufacturing facilities, with a focus on supporting the electric vehicle (EV) and renewable energy storage sectors.

The Union Budget for FY 2025-26 has introduced exemptions on Basic Customs Duty (BCD) for 35 additional capital goods used in EV battery production, which are aimed at enhancing domestic lithium-ion battery manufacturing.

The Ministry stated that its policies have encouraged the participation of multiple private sector players, with over 10 companies working on setting up an additional 100 GWh of cell manufacturing capacity beyond the PLI beneficiaries.

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