Advanced Chemistry Cell Production Linked Incentive (ACC-PLI) Scheme
Context:
A recent report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research has flagged that India’s flagship battery manufacturing scheme has hit severe roadblocks
The scheme achieved only 2.8% of its targeted capacity four years after its launch.
About the National Programme on Advanced Chemistry Cell (ACC) Battery storage:
It was approved by the Union Cabinet in 2021, with a budgetary outlay of ₹18,100 crore.
The objective is to enhance India’s manufacturing capabilities of Advanced Chemistry Cells (ACC)—modern batteries (like lithium-ion) used in electric vehicles and storage.
It offers financial incentives to companies setting up Giga-scale battery manufacturing facilities.
Targets:
Set up a cumulative battery manufacturing capacity of 50 GWh by 2026.
Achieve a minimum Domestic Value Addition (DVA) of 25% within 2 years and 60% within 5 years.
Mandatory minimum investment of ₹225 crore per GWh.
Key Report Highlights:
Against the target of 50 GWh, only 1.4 GWh (approx. 2.8%) of capacity has been commissioned on time.
Ola Electric is the only firm to have successfully commissioned capacity so far.
Due to delays and missed milestones, zero incentives have been disbursed against the targeted ₹2,900 crore by October 2025.
The scheme was expected to create 1.03 million jobs but has so far created only 1,118.
Structural Bottlenecks:
Delays in approving visas for Chinese technical specialists have hindered technology transfer, which is critical for this sector.
Major selected bidders (like Ola, Reliance, Rajesh Exports) lacked prior battery manufacturing expertise.
Experienced players like Amara Raja were priced out by high net-worth requirements.
India lacks a mature ecosystem for critical mineral refining and cell components, leaving it dependent on imports.