In a fresh push to strengthen the domestic battery storage ecosystem, the Centre has initiated the process to operationalise the remaining 10 GWh capacity under the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) Battery Storage.
The capacity is earmarked for Grid Scale Stationary Storage (GSSS) applications, a key requirement for integrating renewable energy into the power grid.
The Ministry of New and Renewable Energy (MNRE) has begun the process of finalising the unallocated 10 GWh capacity under the ACC PLI scheme and has sent a proposal to the Empowered Group of Secretaries (EGoS) for approval, according to government officials. The EGoS is a high-level inter-ministerial body chaired by the Cabinet Secretary.
Senior officers on the timeline of the move
A senior official said that once approval is granted by the EGoS, the Ministry of Heavy Industries (MHI), the nodal ministry for implementing the ACC PLI scheme, will initiate the bidding process for allocating the remaining capacity. “The intent is to accelerate domestic manufacturing of grid-scale battery storage solutions, which are critical for energy transition goals,” the official said.
The ACC PLI scheme—formally titled the National Programme on Advanced Chemistry Cell (ACC) Battery Storage Production—was approved by the Union Cabinet in May 2021 with a total outlay of ₹18,100 crore.
The scheme aims to create 50 GWh of domestic ACC manufacturing capacity, reducing India’s dependence on battery imports while supporting electric mobility and renewable energy integration.
So far, 40 GWh of capacity has been allocated in two tranches to four beneficiaries. In the first tranche awarded in 2022, three companies—Ola Electric Mobility (20 GWh), Rajesh Exports (5 GWh), and Reliance New Energy (5 GWh)—secured capacity under the scheme.
While all three companies have commissioned their manufacturing facilities, none has yet commenced large-scale commercial production.
In the second tranche, a subsidiary of Reliance Industries Ltd (RIL) in February 2025 got another 10 GWh of battery manufacturing capacity under the ACC PLI scheme.
With the 40 GWh allocated, the final 10 GWh capacity remains unassigned, prompting the government to move forward with the next phase of the scheme.
Focus on grid-scale stationary storage systems
Officials said the focus this time will be on grid-scale stationary storage systems, which are increasingly seen as essential for managing intermittency in renewable energy generation, particularly solar and wind power.
This comes at a time when Indian players, including Reliance Industries, have delayed or paused plans to manufacture lithium-ion battery cells domestically after failing to secure Chinese technology, highlighting the challenges in building a clean-energy supply chain.
Battery energy storage systems play a critical role in balancing supply and demand, stabilising the grid, and enabling higher penetration of renewables. India has set ambitious targets to achieve 500 GW of non-fossil fuel capacity by 2030, and experts believe large-scale battery storage will be a key enabler in meeting this goal.
The government’s renewed push comes amid slower-than-expected ramp-up of commercial battery production by existing PLI beneficiaries, even as demand for storage solutions continues to rise.
The Centre hopes that the completion of the full 50 GWh allocation under the ACC PLI scheme will significantly boost local manufacturing.