On Tuesday, the Ministry of Heavy Industries (MHI) signed a Programme Agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries, under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cells (ACC). This agreement provides Reliance New Energy Battery Limited with a manufacturing capacity of 10 GWh for ACCs, qualifying the company for incentives under India's ₹18,100 crore PLI ACC scheme.

The Cabinet approved the PLI ACC scheme in May 2021, allocating ₹18,100 crore to create a manufacturing capacity of 50 GWh. With the most recent agreement, 40 GWh has been assigned to four companies. During the first round of bidding in March 2022, three companies were granted a combined capacity of 30 GWh, and the Programme Agreements were finalised in July 2022.

MHI officials explain that the PLI ACC scheme is organised to increase local value addition and make battery manufacturing in India more cost-competitive. The scheme allows companies to select the appropriate technologies and materials to set up advanced manufacturing facilities for advanced chemistry cells (ACC), focusing on electric vehicles and renewable energy storage.

In the Union Budget for FY2025-26, measures were instructed to support domestic battery production, including exemptions on Basic Customs Duty (BCD) for 35 additional capital goods used in EV battery manufacturing. These steps will boost lithium-ion battery production and strengthen the domestic supply chain.

The Ministry of Heavy Industries promotes innovation, draws foreign investment, and helps create a self-sustaining advanced battery ecosystem. In addition to the companies benefiting from the PLI scheme, over ten other companies are establishing new battery manufacturing plants, which is helping grow the sector.