CUMULATIVE CAPACITY UNDER ACC-PLI

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CUMULATIVE CAPACITY UNDER ACC-PLI — UPSC Study Note

1. At a Glance

2. Why in the News

3. Background & Evolution

4. Core Static Facts

5. Multi-Dimensional Analysis

Economic - Targets import substitution for Li-ion cells (India imports ~₹26,000 crore+/yr of cells); PLI offers tapered incentives over 5 years tied to sales + DVA + efficiency [S2]. - Slippage: only ~2.5% (1/40 GWh) of awarded capacity installed despite full land acquisition — undermines fiscal multiplier of the outlay [S1].

Strategic / Geopolitical - Reduces dependence on China (dominates >75% of global cell manufacturing); aligns with Aatmanirbhar Bharat and critical-mineral diplomacy (KABIL, Lithium Triangle outreach) [S2]. - Battery storage = enabler of 500 GW non-fossil capacity by 2030 (Panchamrit, COP-26).

Scientific / Technological - "ACC" = all storage technologies with >50 Wh/kg energy density — includes Li-ion, Na-ion, solid-state, metal-air, flow batteries; scheme is technology-agnostic [S2]. - Mandates R&D and 60% DVA to prevent assembly-only operations [S2].

Administrative - Selection via Quality & Cost-Based Selection (QCBS) under MHI [S3]. - Re-bidding cycle (Jan–Sep 2024) shows institutional capacity to rework defaults but also indicates initial mis-selection (Hyundai exit) [S3].

Environmental - Enables EV transition → lower tail-pipe emissions; but cell manufacturing is energy- and mineral-intensive — recycling rules (BWMR 2022) become essential complement.

6. Recent Developments (last 12-18 months)

7. Prelims Hooks

8. Mains Relevance

9. Related Topics to Study Next

10. Common Errors / Trap Areas

11. Sources

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