Ministry of Heavy Industries awards fourth allocation under Rs 18,100 crore PLI program, bringing total capacity to 40 GWh of planned 50 GWh for advanced battery production.
18 Feb 2025 | 5581 Views | By Sarthak Mahajan
The Ministry of Heavy Industries has signed a programme agreement with Reliance New Energy Battery Limited for manufacturing advanced battery cells.
The agreement, signed yesterday, grants Reliance a 10 gigawatt-hour (GWh) capacity under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage. This allocation makes ...
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The Ministry of Heavy Industries has signed a programme agreement with Reliance New Energy Battery Limited for manufacturing advanced battery cells.
The agreement, signed yesterday, grants Reliance a 10 gigawatt-hour (GWh) capacity under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage. This allocation makes Reliance eligible for incentives under the ₹18,100 crore scheme. The exact amount of subsidies that the company is eligible to recieve was not disclosed.
"This brings the total allocated capacity to 40 GWh out of the planned 50 GWh under the national program," said a ministry spokesperson. The remaining three beneficiaries received their allocations in July 2022 following the first bidding round.
Industry analysts note that the scheme's technology-agnostic approach allows manufacturers flexibility in choosing appropriate technologies while ensuring cost competitiveness. The initiative primarily targets supporting electric vehicles and renewable energy storage systems.
The agreement comes on the heels of the FY2025-26 Union Budget, which exempted 35 additional capital goods for EV battery manufacturing from Basic Customs Duty. These measures aim to strengthen domestic lithium-ion battery production capabilities.
"We're seeing significant interest beyond the PLI beneficiaries," noted an industry expert. "More than ten companies have already begun setting up additional manufacturing facilities with a combined capacity exceeding 100 GWh."
The initiative represents part of India's broader strategy to reduce dependence on imported battery cells while creating a robust domestic supply chain in the rapidly growing energy storage sector.
The Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage represents a strategic investment in India's energy future. With a ₹18,100 crore allocation, the program addresses critical gaps in domestic battery manufacturing capabilities.
By incentivizing production, the scheme aims to reduce import dependency while building local expertise in advanced battery technologies. This self-reliance is particularly vital as global demand for lithium-ion batteries surges amid electric vehicle adoption and renewable energy integration.
The economic implications extend beyond manufacturing. The PLI scheme creates opportunities for auxiliary industries, employment generation, and technology transfer. It also positions India competitively in the global battery market.
From an environmental perspective, domestic battery production supports India's carbon reduction goals by enabling affordable energy storage solutions for clean power. The technology-agnostic approach ensures flexibility to adopt emerging battery chemistries as the field evolves.
Ultimately, the PLI scheme represents an investment in India's technological sovereignty and sustainable development pathway.