In a significant development for India’s advanced battery manufacturing industry, the Ministry of Heavy Industries (MHI), Government of India, has signed a Programme Agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries Limited. The agreement, signed on 17th February 2025, allocates a 10 GWh capacity to Reliance New Energy Battery Limited under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC). This capacity allocation follows a competitive global tender process, making the company eligible for incentives under the ₹18,100 crore PLI ACC scheme.

The signing marks another important milestone in the implementation of the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, which was approved by the Cabinet in May 2021. With a total outlay of ₹18,100 crore, the scheme aims to achieve a total manufacturing capacity of 50 GWh. With the latest agreement, the cumulative awarded capacity under the scheme now stands at 40 GWh, allocated to four beneficiary firms. In the first round of bidding conducted in March 2022, three firms were awarded a total capacity of 30 GWh, with Programme Agreements for that round signed in July 2022.

At the signing ceremony, senior officials from MHI highlighted the pivotal role of the PLI ACC Scheme in driving local value addition while ensuring that the cost of battery manufacturing in India remains globally competitive. The scheme allows beneficiary firms the flexibility to choose the most suitable technology and associated inputs for establishing advanced ACC manufacturing facilities. This flexibility is designed to support critical sectors, primarily electric vehicle (EV) manufacturing and renewable energy storage.

The PLI ACC scheme is being complemented by transformative measures introduced in the Union Budget for FY2025-26, which aim to accelerate domestic battery manufacturing and bolster the country’s e-mobility ecosystem. A key measure in the Budget is the exemption of 35 additional capital goods for EV battery manufacturing from Basic Customs Duty (BCD). This targeted initiative is expected to enhance the production of lithium-ion batteries within India, further supporting the development of a self-reliant, sustainable energy ecosystem. The Budget’s focus on reinforcing domestic manufacturing and promoting value addition aligns with the government’s vision of establishing a robust and competitive advanced battery sector in India.

The Ministry of Heavy Industries remains committed to fostering innovation, strengthening the domestic supply chain, and attracting significant foreign direct investment. These efforts are crucial in advancing India’s strategic vision for sustainable development and self-reliance. The PLI ACC scheme has already acted as a catalyst for the growth of the domestic battery manufacturing sector, with more than 10 companies, apart from the PLI beneficiaries, setting up an additional 100+ GWh of manufacturing capacity across India.

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