Government initiates bidding process for 10 GWh ACC batteries
Ministries of Heavy Industries (MHI) and New & Renewable Energy (MNRE) have initiated the bidding process for the balance 10 GWh capacity for Grid Scale Stationary Storage (GSSS) applications under the production linked incentive (PLI) scheme for Advanced Chemistry Cell (ACC) Battery Storage Production.
“Bids for the same are in advance stage of finalisation,” sources at MHI told businessline.
MHI has already completed bidding of Round-2 (10 GWh capacity) for which the Letter of Award (LoA) was issued to Reliance Industries Ltd for 10 GWh capacity on September 6, 2024, the sources said, adding that the signing of ‘Programme Agreement’ is in advance stage.
Government had approved the PLI-ACC scheme “National Programme on Advanced Chemistry Cell (ACC) Battery Storage Production” in May 2021, with an outlay of ₹18,100 crore for 50 GWh ACC capacity.
PLI-ACC scheme
In the first round, the government had approved three companies including ACC Energy Storage Pvt Ltd (AESPL, for 5 GWh); Ola Cell Technologies Pvt Ltd (for 20 GWh); and Reliance New Energy Battery Storage Ltd (for 5 GWh).
These firms have signed the ‘Programme Agreement’ to implement the PLI-ACC scheme for setting up manufacturing facilities of 30 GWh ACC capacity. The beneficiary firms are setting up their manufacturing facilities. Cumulative investments of ₹1,575 crore and employment of 889 numbers have been generated by the beneficiary firms till December 2024, the sources said.
Sharing the update from the first round, a senior official at MHI said that AESPL reported completion of the testing for prototype finalisation and has also ordered some the critical plant and machinery.
Similarly, Ola Cell Technologies Pvt Ltd (OCTPL) has commissioned 1 GWh ACC capacity and have produced more than 40,000 ACCs till now.
“Currently, product stabilisation is under progress. OCTPL is producing cells of NMC chemistry. The expansion of OCTPL unit to 5 GWh capacity is under progress,” the official said.
Similarly, Reliance New Energy Battery Storage Ltd (RNEBSL) has completed land acquisition and plans to produce both mobility and storage cells.
Budget support
The Budget 2025-26 (FY26) has introduced significant support for the domestic ACC industry, with key interventions including exemptions on basic customs duty (BCD) for the import of capital goods, certain critical minerals and lithium-ion battery waste and scrap.
According to analysts, these measures will likely boost domestic manufacturing by reducing raw material costs, lowering equipment costs, and strengthening the supply chain for critical battery materials and minerals.
India’s ACC industry imports most critical minerals like lithium, nickel, cobalt needed for ACC battery manufacturing. The current BCD on these materials is in the range of 5-10 per cent. The exemption will help reduce raw material costs, improving profit margins for manufacturers and enhancing the cost-effectiveness of domestically produced ACC components, cells, and electric vehicles (EVs).
The exemption of 35 additional capital equipment items from BCD, along with the previous 22 exemptions, would also significantly lower the costs for India’s Lithium-ion battery manufacturers for EVs.
With capital goods comprising major value of plant setup costs, this move could reduce initial investments, the analysts said adding that by enhancing cost competitiveness, it strengthens India’s position against China and South Korea while aligning with the PLI scheme to boost domestic production and reduce reliance on imports.
