Source: TH
Subject: Schemes in News
Context: India’s Advanced Chemistry Cell–Production Linked Incentive (ACC-PLI) scheme has fallen behind schedule, with only 1.4 GWh battery capacity commissioned against a target of 50 GWh by 2026, as per a recent analytical report.
About Advanced Chemistry Cell (ACC) – Production Linked Incentive (PLI) Scheme:
What is the ACC-PLI scheme?
- The ACC-PLI scheme is a central sector incentive programme to promote domestic manufacturing of advanced battery cells (such as lithium-ion cells) used in electric vehicles (EVs) and grid-scale energy storage, reducing India’s dependence on imports.
Announced in: October 2021
Implementing Ministry: Ministry of Heavy Industries
Aim and objectives:
- Create 50 GWh of domestic ACC manufacturing capacity.
- Build a local battery supply chain (cells, components, materials).
- Reduce strategic dependence on imported batteries (especially from China).
Key features of ACC-PLI Scheme (Concise)
- Total outlay (₹18,100 crore): Government financial commitment to scale up domestic advanced battery manufacturing.
- Performance-linked incentive: Subsidy linked to actual battery cells sold, ensuring output-based support.
- Incentive cap (~₹2,000/kWh): Sets an upper limit on per-unit support to control fiscal cost.
- Minimum investment (₹1,100 crore): Ensures only serious, large-scale manufacturers
- Domestic value addition mandate: Compels creation of a local battery supply chain.
- 25% in 2 years: Early localisation push.
- 60% in 5 years: Deep manufacturing ecosystem over time.
- Target technology: Focuses on Advanced Chemistry Cells (like lithium-ion) critical for EVs and energy storage, excluding conventional lead-acid batteries.
- Selected beneficiaries:
- Ola Electric, Reliance New Energy, Rajesh Exports chosen via competitive bidding.
- Hyundai Global exited, reducing effective allocated capacity.
