PLI-ACC SCHEME

1. At a Glance

• Production Linked Incentive (PLI) scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage, administered by the Ministry of Heavy Industries (MHI) [S1][S2].
• Aims to build 50 GWh of domestic ACC giga-scale manufacturing capacity with outlay of ₹18,100 crore, approved May 2021 [S1][S3].
• Cornerstone of India's Atmanirbhar Bharat push for energy storage, EV batteries, and grid storage — reduces import dependence on China for Li-ion cells.

2. Why in the News

• Feb 2026 PIB statement: of the 50 GWh targeted, 40 GWh awarded across two rounds to four firms; cumulative investment and direct employment figures released [S1].
• Feb 17, 2025: MHI signed Programme Agreement with Reliance New Energy Battery Ltd. for the 10 GWh capacity awarded in Round 2 [S4].

3. Background & Evolution

• May 12, 2021: Union Cabinet approved the National Programme on ACC Battery Storage [S3].
• March 2022 (Round 1): Allotment of 50 GWh originally announced to 4 bidders; on signing in July 2022, only 3 firms (Reliance, Ola, Rajesh Exports) covering 30 GWh signed Programme Agreements [S2].
• Re-tender (Jan 24, 2024): MHI floated global tender for the residual 10 GWh with outlay of ₹3,620 crore [S5].
• Aug 2, 2024: Financial bids opened; QCBS evaluation [S5].
• Feb 17, 2025: Programme Agreement signed with Reliance New Energy Battery Ltd. for 10 GWh [S4].

4. Core Static Facts

• Nodal Ministry: Ministry of Heavy Industries [S1].
• Outlay: ₹18,100 crore for 50 GWh; ₹3,620 crore sub-outlay for the re-bid 10 GWh tranche [S1][S5].
• Beneficiary firms & capacity (per Feb 2026 PIB) [S1]:
• ACC Energy Storage Pvt. Ltd. — 5 GWh — Dharwad, Karnataka — Investment ₹262 cr — 184 jobs.
• Ola Cell Technologies Pvt. Ltd. — 20 GWh — Krishnagiri, Tamil Nadu — Investment ₹1,503 cr — 634 jobs.
• Reliance New Energy Battery Storage Ltd. — 5 GWh — Jamnagar, Gujarat.
• Reliance New Energy Battery Ltd. — 10 GWh (Round 2) [S4].
• Technology scope: ACC = next-gen storage tech storing electrochemical/electrochemical energy — Li-ion, sodium-ion, flow batteries, metal-air, solid-state, etc.
• Incentive form: Subsidy disbursed over 5 years post commissioning, linked to sales, value addition, and committed capacity.

5. Multi-Dimensional Analysis

Economic - Targets ~₹45,000 crore private investment in giga-factories; substitution of ~₹20,000 cr annual cell imports. - Anchors domestic EV cost curve — cells form ~40% of EV BOM.

Strategic / Geopolitical - Reduces dependence on China, which dominates >75% of global cell manufacturing. - Synergises with Critical Minerals Mission and KABIL's overseas lithium/cobalt acquisition.

Environmental - Enables India's 500 GW non-fossil by 2030 target (Panchamrit, COP-26) by providing storage backbone. - Mandates minimum 25% domestic value addition within 2 years, rising to 60% within 5 years.

Administrative - Use of competitive QCBS bidding rather than open-ended subsidy — design innovation [S5]. - Slow ramp-up: 4 years after approval, only 40/50 GWh allotted; mother-unit commissioning still pending.

Scientific / Technological - Technology-agnostic — allows beneficiaries to pick chemistry (NMC, LFP, Na-ion). - Mandatory R&D tie-up & domestic value addition discourages "screwdriver" assembly.

6. Recent Developments (last 12-18 months)

• Jan 24, 2024: Re-tender notified for residual 10 GWh, outlay ₹3,620 cr [S5].
• Aug 2, 2024: Financial bids opened; 7 bidders shortlisted [S5].
• Feb 17, 2025: Programme Agreement signed with Reliance New Energy Battery Ltd. [S4].
• Feb 10, 2026: PIB note discloses cumulative awarded capacity 40 GWh and firm-wise investment & employment data [S1].

7. Prelims Hooks

• Outlay of PLI-ACC scheme: ₹18,100 crore [S1].
• Target capacity: 50 GWh of ACC [S1].
• Approval year: May 2021 by Union Cabinet [S3].
• Implementing ministry: Ministry of Heavy Industries (not MNRE, not MeitY) [S1].
• Round-2 re-bid outlay: ₹3,620 crore for 10 GWh [S5].
• Round-2 selection method: Quality & Cost Based Selection (QCBS) [S5].
• Ola Cell Technologies Pvt. Ltd. — largest beneficiary at 20 GWh, located at Krishnagiri, Tamil Nadu [S1].
• ACC Energy Storage Pvt. Ltd. plant — Dharwad, Karnataka (5 GWh) [S1].
• Reliance New Energy battery plant — Jamnagar, Gujarat [S1].
• Round-1 Programme Agreements signed: 28 July 2022 [S2].
• Round-2 Programme Agreement (Reliance) signed: 17 Feb 2025 [S4].
• Capacity awarded so far: 40 GWh / 50 GWh to 4 beneficiary firms [S1].
• Minimum committed capacity per bidder: 5 GWh; max 20 GWh under scheme guidelines.
• Mandatory domestic value addition: 25% by Year 2 → 60% by Year 5.

8. Mains Relevance

• GS-III: Indian Economy — Industrial Policy; Infrastructure (Energy); Science & Tech (indigenisation).
• Syllabus headings: "Government Budgeting", "Effects of liberalisation on the economy, changes in industrial policy", "Indigenisation of technology".
• Probable question stems: 1. "Discuss how the PLI-ACC scheme can position India in the global EV and energy-storage value chain. What bottlenecks remain?" 2. "PLI schemes mark a shift from horizontal to vertical industrial policy. Critically evaluate with reference to the ACC battery storage programme." 3. "Examine the linkages between domestic ACC manufacturing capacity and India's climate commitments under the Panchamrit."

9. Related Topics to Study Next

• FAME-II & PM E-DRIVE — demand-side complement to PLI-ACC (EV adoption).
• PLI Scheme for Auto & Auto Components (₹25,938 cr) — sister MHI scheme.
• National Critical Minerals Mission (2025) — upstream feedstock for ACC.
• KABIL — overseas lithium/cobalt asset acquisition.
• Battery Waste Management Rules, 2022 — circularity loop.
• National Green Hydrogen Mission — parallel clean-tech PLI.
• Semicon India Programme — comparator PLI for chips.
• National Electricity Plan & 500 GW RE target — storage demand driver.

10. Common Errors / Trap Areas

• Ministry confusion: PLI-ACC is under MHI, NOT MNRE, MeitY, or DPIIT.
• Outlay confusion: ₹18,100 cr is for ACC; do not confuse with ₹76,000 cr Semicon or ₹25,938 cr Auto PLI.
• Original Round-1 award was 50 GWh to 4 firms, but Hyundai Global was disqualified; effective signing was 30 GWh to 3 firms — exam may test the signed vs allotted distinction [S2].
• ACC ≠ only lithium-ion — scheme is technology-agnostic across all advanced chemistries.
• Approval year is 2021, not 2020 (when PLI umbrella for 13 sectors was announced).

11. Sources

• [S1] PLI-ACC SCHEME, PIB, 10 Feb 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2225877 — (tier: 1)
• [S2] Allotment made for 50 GWh of battery capacity to 4 successful bidders, PIB — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1809037 — (tier: 1)
• [S3] Cabinet approves PLI scheme "National Programme on ACC Battery Storage", PIB, May 2021 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1717938 — (tier: 1)
• [S4] Programme Agreement Signed with Reliance New Energy Battery Limited for 10 GWh, PIB — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2104281 — (tier: 1)
• [S5] MHI awards 10 GWh capacity to one bidder under PLI ACC scheme, PIB — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2051743 — (tier: 1)