Launched in 2020 with a massive ₹1.97 lakh crore outlay, India’s Production Linked Incentive (PLI) scheme was designed to boost domestic manufacturing and reduce import dependence. The program has delivered strong results in several sectors—attracting ₹1.46 lakh crore in investments, generating ₹12.5 lakh crore in production, creating over 9.5 lakh jobs, and enabling ₹4 lakh crore in exports as of August last year.
Yet, despite this broad success, two critical green-tech segments—Advanced Chemistry Cell (ACC) battery storage and green hydrogen—continue to lag. Their slow progress and repeated deadline extensions are now raising questions about implementation efficacy and accountability.
ACC Battery Storage: High Hopes, Low Momentum
The ACC battery sector, essential for India’s electric mobility and energy storage goals, has seen limited uptake despite increased budget allocations—from ₹15 crore to ₹156 crore for FY 2025–26. The government awarded 50 GWh of capacity to major players including Reliance New Energy, Ola Electric, Hyundai, and Rajesh Exports, but none of them have begun commercial-scale production as of early 2025. This slow pace has led to companies missing PLI-linked deadlines and seeking penalty waivers. One of the key barriers is India’s dependence on imported raw materials like lithium, cobalt, and nickel, which leaves the sector vulnerable to global price fluctuations and supply chain shocks.
Green Hydrogen: Strong Policy, Weak Execution
India’s ambitions in green hydrogen—crucial for reducing fossil fuel imports and ensuring long-term energy security—also face similar delays. The National Green Hydrogen Mission allocated ₹13,050 crore for hydrogen production and ₹4,440 crore for electrolyser manufacturing. While policy frameworks are robust, on-ground execution has stalled.
In January 2025, the Solar Energy Corporation of India (SECI) announced winners for electrolyser manufacturing and hydrogen production under the SIGHT scheme, awarding incentives between ₹93 crore and ₹444 crore over five years to companies like Reliance, John Cockerill, and Jindal.
However, only Ohmium has commenced limited production, with others expected to launch commercial operations by FY26. This slow rollout has prompted calls for an urgent evaluation of non-serious bidders, with industry experts recommending strict action against non-compliant firms to protect the credibility of the initiative.
Time for Course Correction
Experts warn that the PLI scheme’s credibility hinges on strict enforcement of performance benchmarks. As India accelerates toward its goals of energy security and industrial self-reliance, the government must enforce firm governance, reassess underperforming projects, and ensure that public funds are tied to measurable outcomes. As reported by thehindubusinessline.com, timely course correction and clear accountability will be essential if India wants to sustain momentum in clean energy manufacturing and maintain investor confidence in its industrial policy landscape.
