New Delhi, February 18 (HS): The Union Ministry of Heavy Industries signed a program agreement with Reliance New Energy Battery Limited (a subsidiary of Reliance Industries Limited) under the Production Linked Incentive (PLI) scheme for advanced chemistry cells (ACC) in a major step for the country's advanced battery manufacturing sector. The agreement signed on Monday provides 10 GWh of ACC capacity to Reliance New Energy Battery Limited after a competitive global tender process and makes it eligible for incentives under India's Rs 18,100 crore PLI ACC scheme.
This agreement is another significant achievement in the implementation of the Technology PLI Scheme on “National Program on Advanced Chemistry Cell Battery Storage” approved by the Cabinet in May 2021. Its total outlay is Rs 18,100 crore, with an aim to achieve a total manufacturing capacity of 50 GWh. With this signing, a cumulative capacity of 40 GWh has been awarded to four selected beneficiary firms out of the 50 GWh capacity. In the first round of tendering held in March 2022, a total of 30 GWh capacity was allocated to three beneficiary firms, and the program agreements for that round were signed in July 2022.
Senior officials of the Ministry of Heavy Industries during the ceremony emphasized that the PLI ACC scheme is designed to promote local value addition and also ensure that the cost of battery manufacturing in India remains globally competitive. The scheme facilitates the beneficiary firm to adopt superior technology and associated investments for setting up state-of-the-art ACC manufacturing facilities, primarily supporting the EV and renewable energy storage sectors.
Along with the PLI ACC scheme, the Union Budget for FY 2025-26 introduced several transformational measures aimed at accelerating domestic battery manufacturing and promoting the development of e-mobility systems in the country. Notably, the Budget exempted 35 additional capital goods for EV battery manufacturing from basic customs duty (BCD), a targeted initiative designed to boost the production of lithium-ion batteries in the country. Further, its emphasis on strengthening domestic manufacturing and promoting value addition reflects the vision to establish a robust, self-reliant advanced battery system ecosystem.
The Ministry of Heavy Industries is committed to creating a conducive environment for innovation, fostering strong domestic supply chains and attracting significant foreign direct investment. All of these are critical elements in furthering India's strategic vision for sustainable growth and self-reliance. This initiative of the Government of India has acted as a catalyst for Indian cell manufacturers to set up cell manufacturing facilities. Apart from PLI beneficiaries, 10+ companies have already started installing additional capacity of 100+ GWh.
Hindusthan Samachar / Jun Sarkar
