Reliance New Energy Bags Ten GWh Battery Capacity Under PLI Scheme

The Ministry of Heavy Industries (MHI), has signed a programme agreement with Reliance New Energy Battery Ltd, a subsidiary of Reliance Industries Ltd.

The agreement falls under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC). It awards the company a 10 GWh ACC manufacturing capacity.

As a result, Reliance New Energy Battery Ltd is now eligible for incentives. These incentives fall under the INR 18,100-crore PLI ACC scheme.

Competitive Bidding Process and Capacity Allocation

The government awarded this capacity following a competitive global tender process. With the latest agreement, the cumulative awarded capacity under the PLI ACC scheme has reached 40 GWh.

In the first bidding round held in March 2022, three firms received a total allocation of 30 GWh, and the corresponding programme agreements were signed in July 2022.

The cabinet approved the PLI Scheme for ACC battery storage in May 2021, with a total financial outlay of ₹18,100 crore. The initiative aims to establish a domestic manufacturing capacity of 50 GWh, bringing India closer to its energy self-reliance goals.

Boosting Local Manufacturing and Technological Flexibility

The PLI ACC scheme focuses on enhancing local value addition while ensuring that battery manufacturing in India remains globally competitive.

It allows beneficiary companies the flexibility to adopt the most suitable technology and inputs for setting up advanced ACC manufacturing facilities. This approach primarily supports the electric vehicle (EV) and renewable energy storage sectors, which are key to India’s clean energy transition.

Complementary Measures

The budget for FY2025-26 introduced additional measures to accelerate domestic battery manufacturing and strengthen the e-mobility ecosystem.

Notably, the budget exempted 35 additional capital goods for EV battery manufacturing from basic customs duty (BCD). This targeted initiative aims to reduce costs and encourage the production of lithium-ion batteries within India.

The government is fostering a robust domestic battery manufacturing industry by combining the PLI ACC scheme with fiscal incentives. This approach also promotes innovation and sustainability.

According to pv-magazine-india.com, the comprehensive strategy supports India’s energy transition. It also strengthens the country’s position in the global battery supply chain.