India’s PLI Scheme for Battery Storage Sees Slow Progress
The Ministry of Heavy Industries is spearheading the Production Linked Incentive (PLI) scheme, aimed at bolstering the domestic production of Advanced Chemistry Cell (ACC) batteries. Launched in May 2021 with a substantial budget of ₹18,100 crore, the National Programme on ACC Battery Storage seeks to establish 50 GWh of manufacturing capacity in India. However, progress under this initiative has been sluggish, as to date, the beneficiary firms have yet to claim any financial incentives.
A total of 40 GWh of capacity has been awarded to four selected firms. The breakdown of awarded and installed capacities is as follows:
Beneficiary Firms’ Capacity Details
1. ACC Energy Storage Pvt. Ltd. — Awarded: 5 GWh | Installed: 0 GWh
2. Ola Cell Technologies Pvt. Ltd. — Awarded: 20 GWh | Installed: 1 GWh
3. Reliance New Energy Battery Storage Ltd. — Awarded: 5 GWh | Installed: 0 GWh
4. Reliance New Energy Battery Ltd. — Awarded: 10 GWh | Installed: 0 GWh
TOTAL — Awarded: 40 GWh | Installed: 1 GWh
The sluggish uptake can be attributed to several challenges facing domestic manufacturers in this competitive landscape. Key obstacles include a lack of advanced technology, a shortage of skilled labor, the necessity of importing critical machinery, and the inadequate availability of upstream components.
Government Initiatives to Overcome Challenges
In response to these hurdles, the Ministry of Mines has implemented various measures to boost the domestic supply of critical minerals essential for battery production. Recently, the Union Cabinet approved the establishment of the National Critical Minerals Mission (NCMM), earmarking ₹16,300 crore from FY 2024-25 to FY 2030-31. This mission aims to fortify the supply chain for critical minerals and enhance all stages of the value chain, from exploration to recovery.
The Geological Survey of India (GSI) is actively working on critical mineral exploration, with 195 projects completed in 2024-25 and plans for 230 more in 2025-26. The National Mineral Exploration and Development Trust (NMEDT) has also sanctioned numerous projects to further support these efforts.
Additionally, the government has streamlined the Mines and Mineral Development Act (MMDR) and successfully auctioned several blocks for mineral exploration. Notably, an incentive scheme with a budget of ₹1,500 crore was approved to develop recycling capacities for critical minerals from secondary sources.
The PLI ACC scheme is notably designed to encourage innovation, offering higher incentives for superior technologies. By allowing expenditure on research and development to count towards investment criteria, the government aims to reduce India’s reliance on importation while promoting local production capacity.
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