Updated on June 19, 2025 02:53:21 PM
The Production Linked Incentive (PLI) Scheme for ACC storage intends to establish India as a global leading manufacturer of high-performance battery storage solutions. Mainly aimed at boosting ACC storage systems with more local manufacturing, technology development and innovation, the PLI Scheme for Advanced Chemistry Cell (ACC) Storage covers large scale production. The PLI Scheme of ACC Storage for the expansion of operation to avoid reliance on imported components is a scheme of both national and international investment. The PLI Scheme for Advanced Chemistry Cell (ACC) Storage helps improve India’s energy security but also the competitive landscape for the deployment of energy storage which will help further establish India as a player in EV and renewable energy markets.
The Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Storage aims at enhancing the manufacturing capacity of Advanced Chemistry Cell batteries storage which are fundamental to the EVs and renewable energy storage solutions. The PLI Scheme for ACC Storage provides an efficient way of cutting on importation, and making India the powerhouse of manufacturing and exporting ACC storage systems. As a performance incentive, the PLI Scheme for Advanced Chemistry Cell (ACC) Storage encourages increased production and investment in best practice manufacturing technologies as well as competitiveness in the global market. Recognising the significance of the establishment of an efficient storage system for ACC, the PLI scheme for ACC storage is a vital enabler of energy security in India and contributes to fostering economic growth, generating employment, and turning India into the global hub of energy storage systems.
The Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Storage offers numerous benefits to India’s manufacturing sector:
The Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage offers structured incentives and the parameters and conditions are listed below:
| Parameter | Details |
|---|---|
| Total Incentive Payout | Rs. 18,100 crore over 5 years |
| Cumulative ACC Manufacturing Capacity | 50 GWh (for ACCs) and 5 GWh (for Niche ACC Technologies) |
| Minimum ACC Manufacturing Capacity per Firm | 5 GWh per beneficiary firm |
| Maximum Incentive per Beneficiary | Capped at 20 GWh per firm annually |
| Minimum Value Addition Requirement | 25% at Mother Unit (within 2 years), increasing to 60% within 5 years |
| Eligibility for Disbursement | Subsidy disbursed after the firm meets minimum value addition criteria at Mother Unit or project level |
| Subsidy Disbursement Period | Over a period of 5 years, after the ACC assembly facility is set up |
| Niche ACC Technology Capacity | Additional 5 GWh capacity allocated for Niche ACC technologies (min. 500 MWh per firm) |
| Mandatory Investment | ₹225 crore per GWh at the Mother Unit within 2 years |
| Commissioning Timeline for Manufacturing Facility | Within 2 years from allocation of ACC production capacity |
| State-level Support | Provision for encumbrance-free land, trunk infrastructure, and power at rational rates |
Conclusion
The PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage has a significant role in the development of the country’s energy storage at the international level. Hence the focus on local manufacturing of components, technology development and infrastructure related to the PLI Scheme for ACC Storage entails the policy’s attempt at weaning India off import dependence in the EV and renewable energy segment. Extending large incentives to the firms into manufacturing ACC battery storage under the PLI Scheme for Advanced Chemistry Cell (ACC), the policy is beneficial to enhance energy security with coherent economic growth besides employment generation and export markets. Finally, the PLI Scheme for ACC Storage assists India in positioning itself as the center for global delivery of high-performance ACC storage solutions for clean energy.
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Frequently Asked Questions
PLI Scheme for ACC Battery Storage is aimed at incentivising the production of ACC batteries to promote local production, technology advancement, and innovations provide a favorable route to a decrease in importing ACC storage solutions.
The PLI Scheme for ACC Storage empowers infrastructure, spurs investments, improves export viability, encourages indigenous production, and brings employment in the energy storage segments.
Yes, the PLI Scheme for ACC Storage includes state-level support for free land with no current encumbrances, the construction of trunk infrastructure, and power with reasonable tariffs with a view to attracting investment in manufacturing projects.
The incentive rate ranges from 4% to 6% on incremental sales (net of taxes) over the base year for goods manufactured in India within target segments.
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