PROMOTION OF DOMESTIC BATTERY MANUFACTURING CAPACITY

1. At a Glance

• PLI Scheme — "National Programme on Advanced Chemistry Cell (ACC) Battery Storage" administered by the Ministry of Heavy Industries (MHI) to build 50 GWh of domestic ACC manufacturing capacity. [S1][S2]
• Flagship instrument under Atmanirbhar Bharat for cutting import dependence on Li-ion cells (currently almost wholly imported, largely from China) and enabling the EV + renewable-storage transition. [S2][S3]
• Outlay ₹18,100 crore, disbursed as production-linked incentive over 5 years after commissioning. [S1][S2]

2. Why in the News

• PIB release dated 13 Feb 2026 by MHI: 40 GWh of the 50 GWh target awarded to four beneficiary firms; cumulative investment of ₹3,237 crore and 1,118 jobs generated as of 31.12.2025. [S1]
• Earlier (2024–25) re-bidding of the residual 10 GWh — MHI awarded the leftover tranche to one additional bidder. [S4]

3. Background & Evolution

• May 2021 — Union Cabinet approved the National Programme on ACC Battery Storage. [S5]
• March 2022 — Initial allocation of 50 GWh to four successful bidders (Reliance New Energy, Ola Electric, Hyundai Global Motors, Rajesh Exports). [S6]
• July 2022 — Programme Agreements signed with three firms. [S7]
• 2023 — Engineers India Ltd. appointed as Independent Engineer for the PLI-ACC Scheme. [S8]
• 2024 — MHI re-tendered residual 10 GWh; awarded to ACC bidder (Reliance New Energy Battery Ltd. signed agreement for 10 GWh additional). [S4][S9]

4. Core Static Facts

• Scheme name: National Programme on ACC Battery Storage (PLI). [S5]
• Ministry: Heavy Industries (NOT MNRE / MeitY). [S1]
• Outlay: ₹18,100 crore. [S1][S5]
• Target capacity: 50 GWh ACC + 5 GWh "Niche" ACC. [S5]
• Minimum bid size per manufacturer: 5 GWh. [S2]
• Mandatory domestic value addition: 25% within 2 years, 60% within 5 years. [S2]
• Commissioning timeline: 2 years; incentives disbursed over the next 5 years. [S6]
• End-use: Application-agnostic — EVs, grid storage, consumer electronics, solar. [S1]
• Beneficiary firms (initial 40 GWh): Reliance New Energy, Ola Electric Mobility, Rajesh Exports, ACC Energy Storage (originally Hyundai Global Motors). [S6]
• Progress (31.12.2025): Investment ₹3,237 cr; employment 1,118. [S1]

5. Multi-Dimensional Analysis

• Economic — Cuts ~₹40,000 cr annual battery import bill; anchors an EV-battery supply chain; PLI ties payout to actual sales × value-addition slabs. [S2][S3]
• Strategic / Geopolitical — Reduces dependence on Chinese Li-ion cell imports; complements KABIL (Khanij Bidesh) for overseas Li/Co/Ni acquisitions and India's accession to the Minerals Security Partnership. [S3]
• Environmental — Underpins India's Panchamrit / Net-Zero by 2070 pledges; enables storage for 500 GW non-fossil capacity by 2030. [S3]
• Technological — "Advanced Chemistry Cell" defined as any chemistry storing ≥ specified energy density — covers Li-ion, sodium-ion, solid-state, metal-air; technology-neutral. [S5]
• Administrative — Slow uptake: only 1.6% of investment + ~2% of capacity actually installed by end-2025 despite contracts signed in 2022; one original awardee (Hyundai GMC) defaulted, triggering re-tender. [S1][S4]

6. Recent Developments (last 12-18 months)

• 2024 — Re-bidding of 10 GWh tranche after default of an original awardee; awarded to Reliance New Energy Battery Ltd. [S4][S9]
• 2025 (Mar) — MHI Parliamentary reply detailing slow ramp-up and indigenous Li-battery status. [S3][S10]
• Feb 2026 — Latest MHI status: ₹3,237 cr invested, 1,118 jobs as of 31.12.2025. [S1]
• Companion scheme — PM E-DRIVE (2024) replacing FAME-II — boosts demand-side pull for domestically made cells. [S11]

7. Prelims Hooks

• PLI ACC Scheme outlay: ₹18,100 crore. [S1]
• Target capacity: 50 GWh ACC manufacturing. [S5]
• Administered by Ministry of Heavy Industries (not MNRE, not MeitY). [S1]
• Approved by Union Cabinet in May 2021. [S5]
• Minimum domestic value addition: 25% in 2 yrs, 60% in 5 yrs. [S2]
• Minimum manufacturing commitment per bidder: 5 GWh. [S2]
• Four beneficiary firms initially: Reliance New Energy, Ola Electric, Rajesh Exports, Hyundai Global Motors Co. [S6]
• Engineers India Ltd. is the Independent Engineer for the scheme. [S8]
• Capacity awarded so far: 40 GWh of targeted 50 GWh. [S1]
• Investment achieved by 31.12.2025: ₹3,237 crore; jobs: 1,118. [S1]
• "ACC" is technology-agnostic — covers Li-ion, Na-ion, solid-state, metal-air. [S5]
• Incentive disbursed over 5 years after a 2-year commissioning window. [S6]
• Reliance New Energy Battery Ltd. signed additional 10 GWh programme agreement. [S9]

8. Mains Relevance

• GS-III — Indian Economy (Government Budgeting / Industrial Policy); Infrastructure (Energy); Science & Tech (Indigenisation). Also GS-II (Policies and interventions).
• Syllabus headings: "Effects of liberalization on the economy," "Indigenisation of technology," "Government schemes."
• Likely question stems: 1. "Critically examine the role of the PLI scheme on Advanced Chemistry Cell Battery Storage in achieving India's energy transition and Atmanirbhar Bharat goals." 2. "Domestic battery manufacturing is the missing link in India's EV ambitions. Discuss the structural and geopolitical challenges." 3. "Compare and contrast the PLI-ACC scheme with FAME-II / PM E-DRIVE in addressing the EV value chain."

9. Related Topics to Study Next

• FAME-II & PM E-DRIVE (2024) — demand-side EV push complementing PLI-ACC. [S11]
• KABIL (Khanij Bidesh India Ltd.) — overseas critical-mineral acquisition.
• Minerals Security Partnership (MSP) — India joined June 2023.
• National Critical Mineral Mission (2025) — upstream feedstock security.
• Battery Waste Management Rules, 2022 (MoEFCC) — EPR for Li-ion batteries.
• National Green Hydrogen Mission — parallel cleantech PLI architecture.
• Semiconductor PLI / Solar PV PLI — comparator PLI verticals.
• Lithium reserves at Reasi (J&K) — DGMR/GSI discovery 2023.

10. Common Errors / Trap Areas

• Ministry confusion: PLI-ACC is under Heavy Industries, NOT MNRE or MeitY. [S1]
• "ACC" is not Li-ion-only — it is chemistry-agnostic. [S5]
• Approval year is 2021, not 2020 (when broader PLI framework was announced).
• Outlay ₹18,100 cr — easily confused with PLI-Auto (₹25,938 cr) or Solar PV PLI.
• Total target is 50 GWh; only 40 GWh awarded initially (plus a re-tendered 10 GWh tranche). [S1][S4]

11. Sources

• [S1] Promotion of Domestic Battery Manufacturing Capacity — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2227602 — (tier: 1)
• [S2] ACC Battery PLI Scheme — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2246037 — (tier: 1)
• [S3] Advanced Chemistry Cell Batteries and Domestic Capacity — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2202973 — (tier: 1)
• [S4] MHI awards 10 GWh capacity to one bidder under PLI ACC scheme — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2051743 — (tier: 1)
• [S5] Cabinet approves PLI National Programme on ACC Battery Storage — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1717938 — (tier: 1)
• [S6] Allotment of 50 GWh to 4 successful bidders under PLI-ACC — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1809037 — (tier: 1)
• [S7] Three Companies signed Program Agreement under PLI-ACC — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1846078 — (tier: 1)
• [S8] EIL appointed Independent Engineer for PLI-ACC — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1951783 — (tier: 1)
• [S9] Programme Agreement with Reliance New Energy Battery Ltd. for 10 GWh — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2104281 — (tier: 1)
• [S10] PLI Scheme for Advance Chemistry Cells (parliamentary reply) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2224542 — (tier: 1)
• [S11] Indigenous Production of Lithium Batteries — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2157962 — (tier: 1)