Why in News?
- PLI-ACC Scheme on investments, job creation, and ongoing implementation challenges highlighted in Parliament. It refers to India's Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage.
Key Features
- Approved in May 2021 by the Cabinet with ₹18,100 crore outlay to build 50 GWh domestic ACC manufacturing capacity, mainly for EVs and renewable storage.
- Incentives based on sales volume, value addition (25% in 2 years, 60% in 5 years), and minimum investment (₹225 crore/GWh).
- Supports advanced lithium-ion and niche ACC tech; facilities must commission within 2 years of approval.
Progress
| Round |
Capacity Allocated |
Beneficiaries |
Status (as of late 2025) |
| Round-1 (2022) |
30 GWh |
Ola Electric, Rajesh Exports, Hyundai Global (exited) |
Partial commissioning (1.4 GWh total) |
| Round-2 (2025) |
10 GWh |
Reliance New Energy |
Agreement signed; gestation till 2027 |
| Total |
40 GWh |
4 firms (effective 3) |
₹3,237 Cr invested, 1,118 jobs |
Operational Progress & Implementation Challenges
- Installed Capacity: Only 1.4 GWh (approx. 2.8% of the target) has been commissioned so far, with Ola Electric being the only firm to reach this stage as of late 2025.
- Reliance Gigafactory: Reliance reaffirmed in January 2026 that its 40 GWh plant in Jamnagar, Gujarat, is on track to commence operations in 2026, starting with battery energy storage systems (BESS) before full cell manufacturing.
- Financial & Job Impact: As of December 31, 2025, beneficiary firms reported a cumulative investment of ₹3,237 crore and the generation of 1,118 jobs.
Major Bottlenecks: The MHI has noted significant delays due to:
- Limited availability of advanced technology and skilled manpower.
- Challenges in importing critical machinery and equipment.
- Strict Domestic Value Addition (DVA) requirements (minimum 25% within two years).
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