The Ministry of Heavy Industries (MHI) has announced a review of the ₹18,100 crore Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries, following concerns over delays and the absence of incentive disbursals since its launch in 2021.
The flagship scheme, designed to create 50 GWh of battery manufacturing capacity by 2029, has so far attracted commitments for only 40 GWh. However, none of the selected beneficiaries — Ola Electric, Reliance Industries, and Rajesh Exports — has begun production, resulting in no funds being released under the scheme.
Officials said the review will examine reasons behind the slow progress and explore changes to accelerate deployment. Of the 40 GWh allocated, the capacity is end-use agnostic, catering to sectors such as electric mobility, consumer electronics, railways, defence, and stationary energy storage. In addition, 10 GWh has been set aside for grid-scale storage projects.
The beneficiaries have also requested a waiver of penalties for missing the December 2024 commissioning deadline, citing challenges in execution. The government is considering these appeals as part of its broader review.
The outcome of the review is expected to be critical for India’s plans to build a robust domestic battery ecosystem and meet its clean energy and electric mobility targets.
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