Govt eases battery PLI norms to attract more storage players; subsidies lowered
The Ministry of Heavy Industries floated a new tender on 15 July 2026 for 10 GWh of Advanced Chemistry Cell (ACC) battery manufacturing capacity, the final tranche of the 50 GWh target under the Production Linked Incentive (PLI) Scheme for ACC Battery Storage.
The tender documents indicate a shift in policy priorities, relaxing eligibility and support norms compared to earlier tranches of the scheme to attract a wider pool of grid-scale energy storage manufacturers. [Unverified — specific eased provisions not independently confirmed]
Incentive/subsidy levels attached to this tranche have reportedly been lowered relative to earlier rounds, reflecting falling battery cell costs and an evolving assessment of how much support new entrants need. [Unverified]
The 10 GWh capacity under this tender is earmarked specifically for grid-scale stationary energy storage applications, distinct from the 40 GWh already awarded to manufacturers for electric-mobility-linked battery production.
A pre-bid conference is scheduled and bids are to be submitted over the following months, with technical bid evaluation to follow.
PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage
This is the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, a Production Linked Incentive scheme approved by the Union Cabinet on 12 May 2021 to build domestic giga-scale battery manufacturing capacity and reduce import dependence on lithium-ion and other advanced batteries used in electric vehicles and grid storage.
Key Details
- Budgetary outlay: ₹18,100 crore.
- Target: cumulative 50 GWh of ACC manufacturing capacity, plus an additional 5 GWh for "Niche ACC Technologies."
- Beneficiary obligations: minimum domestic value addition of 25% at the start, rising to 60% within five years; mandatory minimum investment of ₹225 crore per GWh of committed capacity within two years.
- Scheme timeline: a two-year Gestation Period (broadly 2023-24) followed by a five-year Performance Period during which incentive disbursement is linked to actual sales of qualifying ACCs.
- Nodal ministry: Ministry of Heavy Industries.
- Companies previously allotted capacity under the scheme include Reliance New Energy Solar, Ola Electric Mobility, Hyundai Global Motors Company, and Rajesh Exports.
The 10 GWh grid-storage tender is the residual tranche completing the scheme's original 50 GWh target; adjusting its incentive/eligibility terms shows how PLI schemes are recalibrated mid-course based on market response and evolving cost curves — a general pattern relevant to other PLI sectors.
Battery Storage, Electric Mobility, and India's Clean Energy Transition
Advanced Chemistry Cells are energy-storage devices (chemical-to-electrical energy conversion units, e.g., lithium-ion, sodium-ion) used both in electric vehicles and in grid-scale "Battery Energy Storage Systems" (BESS) that stabilise renewable-heavy electricity grids by storing surplus solar/wind power for use during demand peaks or non-generation hours.
Key Details
- Grid-scale battery storage supports India's renewable energy integration targets and complements schemes like FAME (Faster Adoption and Manufacturing of Electric Vehicles) for EV-side battery demand and the National Electricity Plan's storage capacity projections.
- The distinction between EV-linked ACC demand (40 GWh awarded) and grid-storage-linked ACC demand (10 GWh in this tender) reflects India's dual battery demand streams: mobility electrification and renewable grid firming.
- Domestic ACC manufacturing under PLI is meant to reduce reliance on imported lithium-ion cells, most of which currently come from a handful of countries with concentrated cell manufacturing and critical mineral processing capacity (e.g., China).
Ring-fencing the last 10 GWh for grid-scale storage (rather than EV batteries) signals a policy pivot toward supporting India's renewable energy storage needs as a distinct priority from electric-vehicle manufacturing, aligning the PLI-ACC scheme more closely with grid decarbonisation goals.
- PLI-ACC scheme outlay: ₹18,100 crore, approved 12 May 2021.
- Total ACC capacity target: 50 GWh (plus 5 GWh niche technologies); 40 GWh already awarded to manufacturers.
- New tender: 10 GWh, floated 15 July 2026, dedicated to grid-scale stationary storage.
- Domestic value addition requirement: minimum 25% initially, rising to 60% within 5 years.
- Minimum investment requirement: ₹225 crore per GWh of committed capacity within 2 years.
- Nodal ministry: Ministry of Heavy Industries.