With 40 GWh allocated in two rounds, India’s PLI-ACC scheme is powering up the battery storage industry, as the Parliament gets an update.
The Ministry of Heavy Industries is overseeing the Production Linked Incentive (PLI) scheme for the ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage,’ which was approved in May 2021 with a funding outlay of ₹181 billion aimed at developing a 50 GWh battery storage capacity.
Till date, 40 GWh of the targeted capacity has been allocated across two bidding rounds to four beneficiary firms. The scheme allows beneficiary firms to select their own locations for manufacturing units, based on strategic business needs, infrastructure, and resource availability.
This update was provided by Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma, in a written reply in the Lok Sabha.
In the first round, ACC Energy Storage Pvt Ltd was awarded 5 GWh, with its manufacturing unit located in Dharwad, Karnataka. The company invested ₹2.62 billion, creating 184 direct jobs. Ola Cell Technologies Pvt Ltd, which was granted 20 GWh in the first round, is setting up its plant in Krishnagiri, Tamil Nadu.
This project has attracted ₹15.03 billion in investment, generating 634 jobs. Another notable beneficiary, Reliance New Energy Battery Storage Ltd, was awarded 5 GWh in Jamnagar, Gujarat, with an investment of ₹7.93 billion and 241 jobs created. In the second round, Reliance New Energy Battery Ltd received 10 GWh, with an investment of ₹6.79 billion and 59 direct jobs.
Overall, the PLI-ACC scheme has attracted ₹32.37 billion in investment and created 1118 direct employment opportunities.
Furthermore, Ola Cell Technologies has established a large-scale ACC manufacturing facility in Tamil Nadu, with a 1 GWh installed capacity. The company commenced pilot production in March 2024 and is working to scale operations for full commercial production.
However, the scheme has encountered several challenges that have delayed its progress. These include gaps in technology, shortages of skilled labour, dependence on imports for critical equipment, and limited availability of upstream components.
Despite these hurdles, the scheme has encouraged at least 10 manufacturers to announce plans to build a combined capacity of 178 GWh.
While the PLI-ACC scheme aims to reduce India’s reliance on imported ACCs, domestic demand for these batteries is still largely met through imports. Nevertheless, the scheme remains a catalyst for growth in the domestic cell manufacturing sector, paving the way for future advancements in the country’s battery storage capacity.
