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Modi Govt Approves Rs 18,100 Crore PLI Scheme To Incentivize Domestic Production Of Advanced Chemistry Cell Battery Storage

Swarajya Staff

May 12, 2021, 04:12 PM | Updated 04:12 PM IST


Prime Minister Narendra Modi and other ministers at a Make-in-India conclave (File photo)
Prime Minister Narendra Modi and other ministers at a Make-in-India conclave (File photo)

The Union Cabinet on Wednesday (12 May) has approved Production Linked Incentive (PLI) Scheme named as 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of 50 GigaWatt Hour (GWh) of ACC and five GWh of niche ACC with an outlay of Rs 18,100 crore.

ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.

The consumer electronics, electric vehicles, advanced electricity grids, solar rooftop etc. which are major battery consuming sectors are expected to achieve robust growth in the coming years. It is expected that the dominant battery technologies will control some of the world's largest growth sectors.

“All the demand of the ACCs is currently being met through imports in India. The National Programme on Advanced Chemistry Cell (ACC) Battery Storage will reduce import dependence. It will also support the Atmanirbhar Bharat initiative,” the cabinet said in a statement.

The outcomes expected from the scheme are direct investment of around Rs 45,000 crore in ACC Battery storage manufacturing projects, import substitution of around Rs 20,000 crore every year and net savings of Rs 2,00,000 crore to Rs 2,50,000 crore on account of oil import bill reduction during the period of this programme due to EV adoption.

ACC battery Storage manufacturers will be selected through a transparent competitive bidding process. The manufacturing facility would have to be commissioned within a period of two years. The incentive will be disbursed thereafter over a period of five years.

Each selected ACC battery Storage manufacturer would have to commit to set-up an ACC manufacturing facility of minimum five GWh capacity.

Furthermore, the beneficiary firms have to achieve a domestic value addition of at least 25 per cent and incur the mandatory investment Rs 225 crore /GWh within two years and raise it to 60 per cent domestic value addition within five years.


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