The Ministry of Heavy Industries has signed a program agreement with Reliance New Energy Battery, a subsidiary of Reliance Industries, for 10 GWh of capacity under the Production Linked Incentive (PLI) Program for Advanced Chemistry Cell (ACC) manufacturing. With this agreement, a total of 40 GWh has now been allocated to four companies out of the program’s 50 GWh capacity. 

The initial bidding for the ACC Energy Storage PLI Program concluded in March 2022, awarding 50 GWh to Ola Electric Mobility (20 GWh), Hyundai Global Motors (20 GWh), Reliance New Energy (5 GWh), and Rajesh Exports (5 GWh). However, Hyundai later withdrew, leaving 20 GWh unallocated. The remaining winners signed agreements in August 2022. 

To allocate the remaining capacity, the Ministry issued a fresh tender in April 2024 for 10 GWh. The bidding process saw participation from ACME Cleantech Solutions, Amara Raja Advanced Cell Technologies, Anvi Power Industries (Gensol Group), JSW Neo Energy, Reliance Industries, Lucas TVS, and Waaree Energies, with total bids reaching 70 GWh. The government had allocated Rs 36.2 billion for this round. 

Approved in May 2021, the Rs 181 billion PLI program is designed to establish 50 GWh of ACC manufacturing capacity in India. Selected manufacturers must achieve a minimum value addition of 25% within two years and at least 60% within five years. Additionally, they must set up a manufacturing capacity of 5 to 10 GWh within five years to qualify for incentives, which will be disbursed quarterly over five years once capacity and value addition targets are met. 

(Mercom)