In a significant boost to India’s advanced battery manufacturing sector, the Ministry of Heavy Industries (MHI) signed a Programme Agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries Limited, on February 17, 2025. Under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC), the company has been awarded a 10 GWh manufacturing capacity, making it eligible for incentives under the Rs 181 billion scheme. 

This agreement marks another milestone in the implementation of the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, approved in May 2021, which aims to establish 50 GWh of domestic manufacturing capacity. With this signing, a cumulative 40 GWh capacity has now been allocated to four beneficiary firms. The first round of bidding in March 2022 had awarded 30 GWh to three firms, with Programme Agreements signed in July 2022. 

Senior MHI officials highlighted that the PLI ACC Scheme is designed to enhance local value addition while keeping India's battery manufacturing costs globally competitive. The scheme allows beneficiaries the flexibility to adopt the most suitable technologies and inputs to establish state-of-the-art ACC manufacturing facilities, supporting India's growing EV and renewable energy storage sectors.

 

Complementing the PLI initiative, the Union Budget for FY 2025-26 introduced key measures to accelerate domestic battery manufacturing. These include exempting 35 additional capital goods used in EV battery production from Basic Customs Duty (BCD), a move aimed at bolstering lithium-ion battery production in India. The Budget’s broader push for strengthening domestic manufacturing and value addition reinforces the government's vision of a self-reliant battery ecosystem. 

The Ministry of Heavy Industries remains committed to fostering innovation, strengthening domestic supply chains, and attracting Foreign Direct Investment (FDI) to build a sustainable battery manufacturing sector. The government's efforts have already spurred investment, with over 10 companies setting up more than 100 GWh of additional cell manufacturing capacity beyond the PLI beneficiaries. 

(PIB)