In a significant move for India’s battery manufacturing industry, the Ministry of Heavy Industries (MHI) has signed a Programme Agreement with Reliance New Energy Battery Limited (a subsidiary of Reliance Industries Limited) on February 17, 2025. This agreement awards Reliance New Energy Battery Limited a 10 GWh capacity under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cells (ACC), following a global competitive bidding process. As a result, the company becomes eligible for incentives under India’s ₹18,100 crore PLI ACC scheme.
This agreement is another major step in the implementation of the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, which was approved by the Cabinet in May 2021. The initiative, with a total outlay of ₹18,100 crore, aims to achieve a 50 GWh manufacturing capacity. With this new signing, 40 GWh has already been allocated to four beneficiary firms, out of the planned 50 GWh. In the first round of bidding, three firms were awarded a total of 30 GWh in March 2022, with Programme Agreements signed in July 2022.
At the signing ceremony, MHI officials highlighted that the PLI ACC Scheme is designed to drive local value addition and keep battery manufacturing costs competitive globally. It provides flexibility for firms to use the most suitable technology and resources for setting up state-of-the-art ACC manufacturing plants, supporting key sectors like electric vehicles (EVs) and renewable energy storage.
In addition to the PLI ACC scheme, the Union Budget for FY2025-26 introduced several initiatives to accelerate domestic battery production and foster the growth of the country’s e-mobility ecosystem. Notably, 35 additional capital goods for EV battery manufacturing were exempted from Basic Customs Duty (BCD), a measure aimed at boosting lithium-ion battery production in India. The Budget’s emphasis on strengthening domestic manufacturing further supports the vision of creating a self-reliant, advanced battery ecosystem.
The Ministry of Heavy Industries is committed to creating an environment conducive to innovation, building a robust domestic supply chain, and attracting foreign investment. This initiative has already spurred more than 10 companies to begin setting up over 100 GWh of additional manufacturing capacity, alongside the PLI scheme’s selected beneficiaries.
