The Ministry of Heavy Industries (MHI) has signed a Programme Agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries Limited, under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cells (ACC). This agreement provides Reliance with a 10 GWh manufacturing capacity, contributing to India’s goal of enhancing local battery production for electric vehicles and renewable energy storage. The agreement is part of India’s ₹18,100 crore PLI ACC scheme, which aims to strengthen the domestic battery manufacturing sector.

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• MHI has signed a Programme Agreement with Reliance New Energy Battery Limited under the PLI ACC Scheme.
• The agreement grants Reliance a 10 GWh manufacturing capacity for advanced chemistry cells (ACC).
• This capacity allocation is part of India’s ₹18,100 crore PLI ACC scheme, which aims to set up 50 GWh manufacturing capacity.
• With this deal, a cumulative total of 40 GWh has been allocated to four companies under the PLI ACC scheme.
• The first round of bidding in March 2022 resulted in 30 GWh being awarded to three firms.
• The scheme aims to reduce battery manufacturing costs in India and enhance local value addition.
• The initiative is focused on the electric vehicle and renewable energy storage sectors.
• The FY2025-26 Union Budget includes exemptions on Basic Customs Duty for 35 additional capital goods used in EV battery production.
• The government’s support is expected to boost lithium-ion battery production and strengthen the domestic supply chain.
• More than ten companies are setting up additional battery manufacturing facilities, contributing to the sector’s growth.