Context:
Recently, the Union Ministry of Heavy Industries (MHI) signed an Agreement with Reliance New Energy Battery Limited under the Production Linked Incentive (PLI) Scheme for the National Programme on Advanced Chemistry Cell (ACC) battery storage.
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This agreement awards Reliance New Energy Battery Limited a 10 GWh ACC manufacturing capacity, following a competitive global tender process and makes it eligible to receive incentives under the PLI ACC scheme.
- Reliance New Energy Battery Limited is a subsidiary of Reliance Industries Limited.
This initiative of the Government of India has acted as a catalyst for Indian cell manufacturers to set up cell manufacturing facilities.
Apart from the PLI beneficiary, 10+ companies have already started setting up 100+ GWh additional capacity.
The Union Budget for FY2025-26 introduced measures to support domestic battery manufacturing, including exemptions on Basic Customs Duty (BCD) for 35 additional capital goods used in EV battery production.
PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery storage
- It was approved by the Union Cabinet in 2021 with a budgetary outlay of Rupee 18,100 crores to establish 50 GWh of battery manufacturing capacity in India over 5 years and to reduce import dependence.
- The first round of bidding in March 2022 allocated 30 GWh capacity to three companies, with Programme Agreements signed in July 2022.
- With this latest agreement, a cumulative capacity of 40 GWh has now been allocated to four companies under the PLI ACC scheme.
- PLI ACC scheme aims to enhance local value addition and ensure competitive battery manufacturing costs in India.
- The scheme allows the beneficiary firm the flexibility to adopt the most suitable technology and associated inputs for establishing state-of-the-art ACC manufacturing facilities, thereby supporting mainly the EV and renewable energy storage sectors.