Boosting local battery production, Reliance New Energy secures 10GWh capacity under Ministry of Heavy Industries‘ ₹181 billion PLI Scheme, with 40GWh allocated and more investments pouring in.
Last week, the Union Ministry of Heavy Industries (MHI) entered into an agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries, under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cells (ACC).
The deal, signed on February 17, 2025, allocates a 10GWh ACC manufacturing capacity to Reliance New Energy, following a competitive global tender. According to the ministry, this move makes the company eligible to receive incentives as part of the ₹181 billion PLI ACC initiative.
The PLI Scheme, approved by the Cabinet in May 2021, aims to establish a total capacity of 50GWh. In the first round of bidding, three companies received 30GWh of capacity, with agreements signed in mid-2022. Furthermore, it has already prompted numerous companies, in addition to the selected beneficiaries, to invest in over 100 GWh of additional battery capacity.
With this new partnership, the total awarded capacity has reached 40 GWh, leaving 10 GWh still to be allocated.
At the signing event, MHI officials stressed that the PLI Scheme is designed to increase local value addition while keeping India’s battery production costs globally competitive. The scheme provides companies with the flexibility to adopt the latest technologies for their ACC manufacturing facilities, focusing on the electric vehicle (EV) and renewable energy storage sectors.
Incidentally, in the recent Union Budget for FY2025 -26, the government announced the exemption of 35 additional capital goods used in EV battery manufacturing from basic customs duty (BCD), aimed at boosting the production of lithium-ion batteries in India.
The MHI highlighted its focus on developing a robust domestic supply chain and the attraction of foreign direct investment to strengthen India’s position in sustainable development.
