The Production Linked Incentive scheme for Advanced Chemistry Cell battery storage has been designed to build indigenous manufacturing capacity in India and reduce dependence on imported cells. Approved in May 2021, the programme carries an outlay of ₹18,100 crore and targets 50 GWh of capacity. The Ministry of Heavy Industries is administering the scheme.
Scheme Coverage and Capacity Awarded
The scheme has already awarded 40 GWh of capacity in two rounds to four beneficiary firms. It is a national programme and does not mandate any fixed location for cell manufacturing units. Firms may choose sites based on business strategy, infrastructure, and resource availability.
Progress by Beneficiary Firms
One beneficiary, M/s Ola Cell Technologies Pvt. Ltd., has set up a giga-scale ACC manufacturing plant with an installed capacity of 1 GWh. The company began pilot production in March 2024 and is now working to stabilise operations for full-scale commercial production.
Key Implementation Challenges
The scheme has faced delays due to operational and implementation-related issues. The main challenges include:
- Unavailability of technology.
- Skilled manpower gap.
- Import of critical equipment and machinery.
- Non-availability of upstream components.
Industrial Impact and Domestic Outlook
The scheme has encouraged Indian cell manufacturers to establish production units. Apart from the PLI ACC applicants, at least 10 manufacturers have announced a cumulative capacity of about 178 GWh in the country. However, domestic demand for ACCs continues to be met largely through imports at present.
Last Modified: April 28, 2026