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

The Department of Heavy Industry, under the Ministry of Heavy Industry and Public Enterprises, Government of India, administers the Production Linked Incentive (PLI) Scheme for the National Programme on Advanced Chemistry Cell (ACC) Battery Storage. The scheme offers financial subsidies to beneficiary firms to encourage the domestic manufacture of Advanced Chemistry Cells (ACCs) and lower reliance on imports. Its objective is to attract both domestic and foreign investors to set up giga-scale ACC manufacturing plants that meet specified value addition, quality, and capacity commitments within a set timeframe.

Implementation follows a transparent selection process based on a Request for Proposal (RFP). The scheme targets 50 GWh of ACC manufacturing capacity, with an additional 5 GWh reserved for niche technologies. Beneficiary firms are required to establish manufacturing facilities within 2 years, after which incentives are paid out over a 5-year period. The programme also sets domestic value addition targets and mandates investment thresholds to develop India's battery ecosystem.

This initiative is intended to strengthen manufacturing capabilities in a critical sector, supporting self-reliance and competitiveness in Advanced Chemistry Cells. By promoting significant investment and indigenous production, it aims to build a dependable supply chain for electric vehicles and renewable energy storage, in line with India's economic and environmental objectives.

1. Await the official Request for Proposal (RFP) issued by the Department of Heavy Industry. 2. Obtain the RFP document from the official platform and review its contents. 3. Draft a full application with a Technical Bid and a Financial Bid, following the RFP’s instructions. 3. Submit the finished application via the designated online portal before the deadline. 4. Take part in the Quality and Cost-Based Selection (QCBS) procedure, where bids are assessed. 5. Go through an assessment that considers committed capacity, value addition targets, and subsidy requirements. 6. If selected, receive an allocation of ACC manufacturing capacity under the scheme. 7. Set up the manufacturing unit within 2 years of the award date. 8. Once the facility is operational and sales have begun, file claims with all necessary supporting documents through the online system for scrutiny. 9. Receive subsidy payments on a quarterly basis after claims are successfully verified.

Beneficiary firms are chosen through a Request for Proposal (RFP) route, with evaluation following a Quality and Cost-Based Selection (QCBS) method that weighs both technical and financial submissions. The criteria for selection cover the manufacturing capacity a firm commits to, the domestic value addition it proposes, and the subsidy amount it seeks. This assessment is designed to admit only those companies that can meaningfully support India's ACC manufacturing base.