PLI Scheme – National Programme on Advanced Chemistry Cell (ACC) Battery Storage
Background and Context
- In today’s world, the biggest bottleneck for Electric Vehicles (EVs) and renewable energy integration is battery storage.
- India imports most of its battery cells, making us dependent on global suppliers.
- To overcome this and build domestic capacity, the Government launched the PLI Scheme for ACC Battery Storage.
This is part of the larger push towards Atmanirbhar Bharat, energy security, and clean mobility.
Quick Facts
- Type: Central Sector Scheme.
- Purpose: Enhance India’s manufacturing capability in Advanced Chemistry Cell (ACC) battery storage.
- Localisation Requirement:
- At least 25% domestic value addition at the Mother Unit level.
- At least 60% domestic value addition at the project level.
- Monitoring: Done by Empowered Group of Secretaries (EGoS), chaired by the Cabinet Secretary.
Objectives
- Achieve higher domestic value addition.
- Ensure that the levelized cost (average lifetime cost) of battery manufacturing in India is globally competitive.
Salient Features
(A) About Advanced Chemistry Cells (ACCs)
- ACCs = new generation energy storage technologies.
- They can:
- Store energy as electrochemical or chemical energy.
- Convert it back into electric energy whenever required.
- Essential for EVs, renewable energy (solar, wind), and grid storage.
(B) Targets
- Build 50 Giga Watt Hour (GWh) of ACC manufacturing capacity.
- Plus an additional 5 GWh capacity for niche ACC technologies.
(C) Incentives
- Cash Subsidy: Annual subsidy capped at 20 GWh per beneficiary firm.
- Minimum Commitment: Each beneficiary must set up at least 5 GWh capacity of ACC manufacturing.
(D) Flexibility – Technology Agnostic
- Firms are free to:
- Choose any advanced battery technology.
- Decide on machinery, raw material, and intermediates.
- Only condition: They must meet localization and capacity criteria.
(E) Exclusion
- Conventional battery packs (already manufactured in India) are not eligible for this scheme.
(F) Complementary Nature
- Incentives under this scheme do not restrict a company from availing benefits under FAME-II or the PLI scheme for Automobiles and Auto Components.
Why is this Important?
- Strategic Importance: Reduces dependence on imports from China, South Korea, etc.
- Economic Impact: Boosts India’s position in the global battery value chain.
- Environmental Benefit: Accelerates EV adoption and renewable energy storage.
- Industrial Impact: Encourages large-scale investment in R&D and manufacturing.
✅ In summary: The PLI Scheme for ACC Battery Storage is India’s big leap in the global EV and energy storage race. By pushing for 50 GWh capacity, ensuring local value addition, and keeping the scheme technology-agnostic, the government is creating a flexible yet ambitious framework. It is not just about subsidies—it is about ensuring India becomes a global hub for advanced batteries, a critical piece in the clean energy puzzle.