The Ministry of Heavy Industries (MHI), Government of India, has signed a Programme Agreement with Reliance New Energy Battery Limited under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC). The agreement grants the company a 10 GWh manufacturing capacity for advanced battery storage.
The PLI ACC scheme, with a total outlay of ₹18,100 crore, aims to establish 50 GWh of domestic manufacturing capacity. With this latest agreement, 40 GWh has now been allocated to four selected companies. The first round of bidding, conducted in March 2022, awarded 30 GWh capacity to three companies, with agreements signed in July 2022.
The scheme is designed to support the production of batteries for electric vehicles (EVs) and renewable energy storage by offering flexibility in technology selection and input sourcing. As part of broader measures to promote domestic battery manufacturing, the Union Budget for FY2025-26 has exempted 35 additional capital goods used in EV battery production from Basic Customs Duty.
According to MHI officials, the initiative aims to enhance local value addition while maintaining globally competitive manufacturing costs. In addition to the PLI scheme, more than ten companies have announced plans to establish over 100 GWh of additional cell manufacturing capacity in India.