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

The Department of Heavy Industry, Ministry of Heavy Industry and Public Enterprises, Government of India, has introduced the “Production Linked Incentive (PLI) Scheme For National Programme on Advanced Chemistry Cell (ACC) Battery Storage”. Its purpose is to draw domestic and foreign investors into setting up giga-scale ACC manufacturing facilities that achieve maximum value addition, quality output, and committed capacity within a fixed timeframe. Subsidy-based financial incentives go to beneficiary firms, encouraging domestic manufacture of Advanced Chemistry Cells (ACCs) and lowering reliance on imports.

The Department of Heavy Industry runs the scheme through a transparent selection process built on a Request for Proposal (RFP). It targets 50 GWh of ACC manufacturing capacity, plus an additional 5 GWh for niche technologies. Beneficiary firms are required to establish manufacturing facilities within 2 years, following which incentives are disbursed over 5 years. Domestic value addition targets are also enforced, and investment thresholds are mandated, to strengthen India's battery ecosystem.

The PLI scheme serves as a strategic measure to expand India's manufacturing capabilities in a critical sector, supporting self-reliance and global competitiveness in Advanced Chemistry Cells. By backing significant investments and encouraging indigenous production, it helps build a robust supply chain for electric vehicles and renewable energy storage solutions, in line with India's wider economic and environmental goals.

1. Await the release of the official Request for Proposal (RFP) by the Department of Heavy Industry. 2. Retrieve and download the RFP document from the official platform. 3. Draw up a detailed application comprising a Technical Bid and a Financial Bid, in line with the RFP guidelines. 4. File the completed application via the designated online submission system before the stipulated deadline. 5. Take part in the Quality and Cost-Based Selection (QCBS) process, under which the submitted bids are assessed. 6. Face evaluation on the basis of committed capacity, value addition targets and subsidy requirements. 7. On being selected, obtain allocation of ACC manufacturing capacity under the scheme. 8. Set up the manufacturing facility within 2 years from the date of award. 9. Once the facility is commissioned and sales begin, file claims through the online system together with all required supporting documents for verification. 10. Receive quarterly subsidy disbursements following successful verification of claims.

Beneficiary firms are chosen through a transparent Request for Proposal (RFP) mechanism. Under the Quality and Cost-Based Selection (QCBS) process, both technical and financial bids come up for assessment, with committed manufacturing capacity, proposed domestic value addition targets and the subsidy requirements sought serving as the selection parameters. This evaluation is what determines which firms are admitted to the scheme — specifically, those able to make a substantial contribution to India's ACC manufacturing ecosystem.