Production Linked Incentive (PLI) Scheme For National Programme on Advanced Chemistry Cell (ACC) Battery Storage

The scheme “Production Linked Incentive (PLI) Scheme For National Programme on Advanced Chemistry Cell (ACC) Battery Storage” has been launched by the Department of Heavy Industry, Ministry of Heavy Industry and Public Enterprises, Government of India. It aims to incentivise domestic and foreign investors to establish giga-scale ACC manufacturing facilities with maximum value addition, quality output, and achievement of committed capacity within a defined time period. Through this scheme, financial incentives in the form of subsidies are provided to beneficiary firms to promote domestic manufacturing of Advanced Chemistry Cells (ACCs) and reduce import dependency. The scheme is implemented by the Department of Heavy Industry through a transparent selection process based on a Request for Proposal (RFP). It envisages setting up 50 GWh of ACC manufacturing capacity and an additional 5 GWh for niche technologies. Beneficiary firms must establish manufacturing facilities within 2 years, after which incentives are disbursed over 5 years. The scheme also ensures domestic value addition targets and mandates investment thresholds to strengthen the battery ecosystem in India.

1. The scheme provides financial incentives with a total outlay of ₹18,100 crore for a period of 5 years.
2. The subsidy is calculated based on applicable subsidy per kilowatt-hour (kWh), percentage of domestic value addition achieved, and actual sales of Advanced Chemistry Cells (ACCs).
3. Incentives are provided only after the beneficiary firm achieves the committed domestic value addition and starts actual sales of ACCs.
4. The total subsidy is capped at 20% of the ACC sale price (net of Goods and Services Tax - GST).
5. The incentive is provided in the form of direct cash subsidy to beneficiary firms.
6. The subsidy is disbursed on a quarterly basis after commissioning of the manufacturing facility and commencement of sales, and continues for a period of 5 years.
7. The beneficiary firm is required to achieve at least 25% domestic value addition within 2 years and increase it to 60% within 5 years.
8. The incentives under this scheme do not restrict the beneficiary from availing incentives under other schemes such as FAME-II or PLI for Automobile and Auto Components.

1. The applicant should be a firm selected as a Beneficiary Firm through a transparent Request for Proposal (RFP) process.
2. The applicant should be allocated Advanced Chemistry Cell (ACC) manufacturing capacity under the scheme.
3. The applicant should commit to setting up a minimum 5 GWh ACC manufacturing facility.
4. The applicant should establish the manufacturing facility within 2 years from the date of award.
5. The applicant should make a minimum investment of ₹225 crore per GWh.
6. The applicant should achieve at least 25% domestic value addition within 2 years.
7. The applicant should increase domestic value addition to 60% within 5 years.
8. The applicant should undertake manufacturing activities in India as per the definition of “manufacture” under the Goods and Services Tax (GST) Act.
9. The applicant should ensure value addition through manufacturing leading to a change in Harmonized System of Nomenclature (HSN) at the 6-digit level.

• The applicant should not be engaged only in the trading of finished ACCs without undertaking manufacturing.
• The applicant will not receive incentives for conventional battery pack manufacturing.
• The applicant will not be eligible if the committed investment, capacity, or value addition conditions are not fulfilled.

Online

Step 1: The applicant should wait for the release of the Request for Proposal (RFP) by the Department of Heavy Industry under the scheme.
Step 2: The applicant should access and download the RFP document from the official platform notified by the Department.
Step 3: The applicant should prepare the application as per the RFP guidelines, including:

• Technical Bid
• Financial Bid

Step 4: The applicant should submit the application through the prescribed online submission system within the specified timeline.
Step 5: The applicant should participate in the Quality and Cost-Based Selection (QCBS) process based on the submitted bids.
Step 6: The applicant should undergo evaluation based on parameters such as committed capacity, value addition targets, and subsidy requirements.
Step 7: Upon selection, the applicant is allocated ACC manufacturing capacity under the scheme.
Step 8: The selected applicant should establish the manufacturing facility within 2 years.
Step 9: After commissioning and commencement of sales, the applicant should submit claims along with required documents through the designated online system.
Step 10: The applicant receives subsidy disbursement on a quarterly basis after verification.