More than five years after it was launched, the INR 18,100 crore PLI scheme for advanced chemistry cells has delivered only 1 GWh of the 40 GWh that it has awarded in India. At the same time, the Ministry of Heavy Industries has extended the bid deadline in its new tender for large battery systems to 10 November.
Click here for a quick project snapshot
The Ministry of Heavy Industries, an India-based government department that administers the INR 18,100 crore production-linked incentive (PLI) scheme for advanced chemistry cells (ACC), has stated that only 1 GWh of the 40 GWh awarded under it has been installed. The scheme was launched more than five years ago to build 50 GWh of cell capacity in India, and its beneficiaries were required to achieve a domestic value-addition of at least 25% at the outset, rising to 60% within five years.
The 40 GWh was awarded in two rounds to four beneficiaries: Ola Cell Technologies, Reliance New Energy Battery Storage, Reliance New Energy Battery and ACC Energy Storage of Rajesh Exports. A second allocation of 10 GWh to Reliance in 2024 did not bring the programme up to its target, and a further tender followed. At present, the only capacity in place is at the plant of Ola in Krishnagiri, Tamil Nadu, where pilot production began in March 2024. In its reply to Parliament in February, the ministry said that no beneficiary had claimed an incentive.
The slow pace has to be seen in context, according to Ankur Khaitan, MD and CEO of TACC Ltd, a subsidiary of HEG Advanced Materials that develops carbon and graphite products for energy storage. In his view, cell manufacturing is one of the most technically complex industries, and India is building it from scratch. The industry has also been held back by curbs on the export of critical equipment and know-how from the main global hubs, and by a sharp fall in global cell prices. Moreover, the anode and cathode materials, which account for over 60% of the cost of a cell, are still largely imported.
Until that layer is built domestically, Indian cells will carry an import cost base, no matter how well the lines run.
Ankur Khaitan, MD and CEO of TACC Ltd
Newer chemistries, such as sodium-ion, could offer a way around these hurdles, according to Vinay Rustagi, Chief Business Officer of Premier Energies, although he has cautioned that bringing them to market is costly and takes time. Investment has nevertheless continued, as projects of 178 GWh have been announced outside the PLI scheme, and several players have moved from construction to commissioning.
Meanwhile, the tender that the ministry issued in July 2026 for large battery systems, which are meant to support renewable energy integration and grid balancing, has raised questions over its bidding process. Of the 265 pre-bid queries, 261 reportedly received stock replies, such as "Provisions of the bid documents shall prevail". The deadline for bids, initially set for 13 October, has been extended to 10 November, and the technical bids are to be opened on 11 November.