What happened: PLI for ACC battery manufacturing approval and implementation milestones

The Ministry of Heavy Industries announced that the Government approved a Production Linked Incentive (PLI) Scheme for manufacturing Advanced Chemistry Cell (ACC) batteries in India on 12.05.2021. The scheme, with a Rs. 18,100 crore budgetary outlay, is designed to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries.

Under the ACC PLI Scheme, 40 GWh of ACC capacity has been awarded to four beneficiary firms. A 1.4 GWh giga-scale ACC manufacturing plant with installed capacity has been established. Government communication also reports that the scheme has attracted ₹5,180 crore investment and created direct employment for 1,277 people up to 31.05.2026.

The ACC PLI Scheme also allows beneficiary firms to use Research and Development (R&D) expenditure to meet investment criteria—supporting the integration of the latest technology into project implementation.

Background and earlier position: what PLI targets in industrial policy

Production Linked Incentive (PLI) schemes are designed to encourage private manufacturing and capacity creation by offering incentives linked to performance or achievement. In the ACC battery context, the policy goal is to build domestic cell manufacturing capacity so that the energy-transition supply chain relies less on imports and more on local production.

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