What is the primary objective of the PLI ACC Battery Storage Scheme?

The scheme aims to incentivise domestic and foreign investors to establish giga-scale Advanced Chemistry Cell (ACC) manufacturing facilities in India, promoting domestic production and reducing import dependency.

What kind of financial incentive does the scheme provide?

The scheme offers financial incentives in the form of direct cash subsidies to beneficiary firms. The total outlay for these incentives is ₹18,100 crore over a period of 5 years.

How are the subsidy amounts calculated?

The subsidy is calculated based on factors such as the applicable subsidy per kilowatt-hour (kWh), the percentage of domestic value addition achieved by the firm, and the actual sales volume of Advanced Chemistry Cells (ACCs).

What are the key eligibility criteria for firms to apply?

Applicants must be selected through a Request for Proposal (RFP) process, commit to setting up a minimum 5 GWh ACC manufacturing facility within two years, and make a minimum investment of ₹225 crore per GWh. They must also achieve specific domestic value addition targets.

When are the incentives disbursed to beneficiary firms?

Incentives are disbursed on a quarterly basis over a period of 5 years, starting after the commissioning of the manufacturing facility, commencement of ACC sales, and achievement of committed domestic value addition targets.

Can firms availing this PLI scheme also benefit from other government schemes?

Yes, firms receiving incentives under this PLI scheme are not restricted from availing incentives under other government schemes such as FAME-II or the PLI for Automobile and Auto Components.

Production Linked Incentive (PLI) Scheme For National Programme on Advanced Chemistry Cell (ACC) Battery Storage

The scheme “Production Linked Incentive (PLI) Scheme For National Programme on Advanced Chemistry Cell (ACC) Battery Storage” has been launched by the Department of Heavy Industry, Ministry of Heavy Industry and Public Enterprises, Government of India. It aims to incentivise domestic and foreign investors to establish giga-scale ACC manufacturing facilities with maximum value addition, quality output, and achievement of committed capacity within a defined time period. Through this scheme, financial incentives in the form of subsidies are provided to beneficiary firms to promote domestic manufacturing of Advanced Chemistry Cells (ACCs) and reduce import dependency. The scheme is implemented by the Department of Heavy Industry through a transparent selection process based on a Request for Proposal (RFP). It envisages setting up 50 GWh of ACC manufacturing capacity and an additional 5 GWh for niche technologies. Beneficiary firms must establish manufacturing facilities within 2 years, after which incentives are disbursed over 5 years. The scheme also ensures domestic value addition targets and mandates investment thresholds to strengthen the battery ecosystem in India. The PLI scheme is a strategic initiative to boost India's manufacturing capabilities in a critical sector, ensuring self-reliance and global competitiveness in Advanced Chemistry Cells. By supporting significant investments and fostering indigenous production, the scheme contributes to creating a robust supply chain for electric vehicles and renewable energy storage solutions, aligning with India's broader economic and environmental goals.

The selection process for beneficiary firms is transparent and based on a Request for Proposal (RFP) mechanism. Applicants undergo a Quality and Cost-Based Selection (QCBS) process, where both technical and financial bids are evaluated. Selection parameters include committed manufacturing capacity, proposed domestic value addition targets, and the requested subsidy requirements. This rigorous evaluation ensures that only firms capable of contributing significantly to India's ACC manufacturing ecosystem are selected for the scheme.

The scheme provides significant financial incentives with a total outlay of ₹18,100 crore over 5 years. Subsidies are calculated based on applicable rates per kilowatt-hour (kWh), achieved domestic value addition, and actual sales of Advanced Chemistry Cells (ACCs). Incentives, capped at 20% of the ACC sale price (net of GST), are provided as direct cash subsidies to beneficiary firms. These are disbursed on a quarterly basis for 5 years after the manufacturing facility is commissioned and sales commence, contingent on meeting domestic value addition targets (25% within 2 years, 60% within 5 years).

Production Linked Incentive (PLI) Scheme For National Programme on Advanced Chemistry Cell (ACC) Battery Storage

Production Linked Incentive (PLI) Scheme For National Programme on Advanced Chemistry Cell (ACC) Battery Storage

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