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India’s Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) Scheme, aimed at building next-generation battery manufacturing capacity, is facing implementation hurdles, threatening the target of achieving 50 GWh domestic capacity by 2026.
Description:
Objective: To reduce India’s dependence on imported batteries, create a domestic battery manufacturing ecosystem, and accelerate EV and energy storage adoption.
Ministry: Ministry of Heavy Industries (MHI)
Launch Year: October 2021
Scheme Type: Central Sector Scheme. Production Linked Incentive (PLI) based on output and localisation
Target Beneficiaries:
- Battery cell manufacturers
- EV and energy storage ecosystem (indirect beneficiaries)
Key Features:
- Technology focus: Advanced Chemistry Cells (non-lead-acid; e.g., lithium-ion)
- Total outlay: ₹18,100 crore
- Target capacity: 50 GWh of ACC manufacturing
- Minimum investment requirement: ₹1,100 crore per selected firm
- Incentive ceiling: ₹2,000 per kWh
- Localisation mandate:
- 25% domestic value addition within 2 years
- 60% domestic value addition within 5 years
- Selection mechanism: Competitive global auction
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