In a significant stride towards strengthening India’s advanced battery manufacturing capabilities, the Ministry of Heavy Industries (MHI), Government of India, has signed a Programme Agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries Limited.
The agreement, signed on February 17, 2025, grants Reliance New Energy a 10 GWh capacity under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC). This follows a global competitive tender process and aligns with the government’s larger objective of promoting self-reliance in battery production.
The share price of Reliance Industries was trading 0.12% higher as of 12:34 PM on February 18, 2025.
This latest agreement marks another key milestone in the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, which was approved by the Cabinet in May 2021 with a total outlay of ₹18,100 crore. The scheme targets a total manufacturing capacity of 50 GWh, of which 40 GWh has now been allocated to four selected firms. The first round of bidding, conducted in March 2022, awarded 30 GWh to three firms, with Programme Agreements signed in July 2022.
The PLI ACC scheme is designed to provide technology-agnostic incentives, enabling firms to establish state-of-the-art battery manufacturing facilities. The objective is to enhance domestic value addition, reduce dependence on imports, and ensure that India’s battery production remains globally competitive.
At the signing ceremony, senior MHI officials reiterated that the PLI ACC scheme is expected to play a pivotal role in boosting India’s clean energy and e-mobility sectors. Beneficiary firms have the flexibility to adopt advanced technologies and optimise production inputs, allowing them to cater to the growing demand for electric vehicle (EV) batteries and renewable energy storage solutions.
Furthermore, the Union Budget for FY 2025-26 has introduced additional measures to accelerate domestic battery manufacturing. Notably, 35 additional Capital Goods for EV battery manufacturing have been exempted from Basic Customs Duty (BCD). This strategic move aims to promote the production of lithium-ion batteries within India while further reinforcing the government’s commitment to strengthening domestic manufacturing and fostering a self-reliant energy ecosystem.
The Government of India continues to encourage innovation and investment in battery technology by providing an enabling environment for foreign direct investment (FDI) and the development of a robust domestic supply chain. As a result, the initiative has become a catalyst for Indian cell manufacturers, with over 10 companies already setting up battery manufacturing facilities beyond the PLI beneficiaries. The total additional planned capacity now exceeds 100 GWh, further cementing India’s position as a key player in the global battery manufacturing landscape.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 18, 2025, 3:41 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
