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The Ministry of Heavy Industries has entered into a programme agreement with Reliance New Energy Battery Limited to increase the domestic manufacture of advanced battery cells.
Reliance has been awarded a 10-gigawatt-hour (GWh) capacity through the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage, according to the deal signed yesterday. This allocation qualifies the corporation for incentives under the ₹18,100 crore scheme, albeit the particular subsidy amount is unknown.
With this latest allocation, the total allotted capacity under the PLI scheme is currently 40 GWh, down from 50 GWh originally envisaged. According to a ministry official, the first three beneficiaries received their allotment in July 2022, following an initial round of bidding.
Industry analysts point out that the scheme's technology-agnostic framework enables producers to choose acceptable technologies while maintaining cost competitiveness. The program is primarily intended to benefit India's electric vehicle (EV) ecosystem and renewable energy storage systems.
The agreement follows key policy measures announced in the FY2025-26 Union Budget, which exempted 35 additional capital goods for EV battery manufacturing from Basic Customs Duty. These policy moves aim to accelerate India's domestic lithium-ion battery production capabilities and reduce dependence on imports.
The PLI scheme is a crucial part of India’s strategy to establish a robust domestic supply chain in the energy storage sector. By incentivising local production, the initiative seeks to position India as a global leader in advanced battery technologies while fostering employment generation, technology transfer, and auxiliary industry growth.
From an environmental perspective, the scheme aligns with India's carbon reduction goals, ensuring affordable and sustainable energy storage solutions for clean power integration. With a technology-agnostic approach, India remains adaptable to emerging battery innovations, reinforcing its commitment to self-reliance in the rapidly evolving energy landscape.
