What the ACC PLI scheme actually is
“ACC” stands for Advanced Chemistry Cell — the modern battery cell (typically lithium-ion) that sits inside every EV pack and every battery energy storage system (BESS). India’s cabinet approved the Production Linked Incentive (PLI) scheme “National Programme on Advanced Chemistry Cell (ACC) Battery Storage” in 2021, with a budgetary outlay of ₹18,100 crore and a target of 50 GWh of domestic cell-manufacturing capacity.
Unlike Viability Gap Funding, which subsidises storage projects, the ACC PLI subsidises manufacturing. It pays a per-unit incentive on cells that are actually made and sold in India, disbursed over five years once a plant is running. The scheme is deliberately technology-agnostic — a winning firm can choose whichever cell chemistry and plant it likes, whether LFP or NMC. What it cannot avoid is the localisation ladder built into the contract.
The value-addition ladder
The incentive is not a free capex grant — it is conditional on progressively “Making in India” rather than just assembling imported cells:
- Each beneficiary must set up a facility of at least 5 GWh and commit a mandatory investment of around ₹225 crore per GWh at the mother-unit level.
- Domestic value addition of at least 25 percent within two years, rising to a minimum of 60 percent within five years.
That rising floor is the whole point: it pushes manufacturers from pack assembly toward true cell production over time.
The bidding rounds and who won
In the first round (2022), the Ministry of Heavy Industries (MHI) allotted the full 50 GWh across four bidders: Ola Electric Mobility (20 GWh), Hyundai Global Motors (20 GWh), Reliance New Energy (5 GWh) and Rajesh Exports (5 GWh). Hyundai then withdrew, leaving 20 GWh unallocated; Ola, Reliance and Rajesh Exports signed programme agreements in 2022.
To reallocate the lapsed capacity, MHI ran a second round (PLI-II) in 2024 for 10 GWh. Seven firms bid — including ACME Cleantech, Amara Raja, JSW Neo Energy, Lucas TVS and Waaree Energies — but the full 10 GWh was awarded to Reliance Industries, with the others waitlisted.
Why domestic cells matter for BESS prices
This is the part that reaches every storage buyer. Today India imports the overwhelming majority of its lithium-ion cells, predominantly from China, and the country’s battery import bill has climbed sharply — reported to have risen from a few hundred million dollars a few years ago to over USD 3 billion by around FY2025. For grid-scale BESS projects, nearly every cell is imported. That exposes Indian BESS prices to exchange rates, freight, customs duty and any Chinese export curbs.
A working domestic cell base would shorten that supply chain, dampen import-price shocks and, over time, feed through to lower system prices — which is exactly why the ACC PLI sits alongside VGF and the other subsidies in India’s storage-manufacturing push.
The honest caveat: progress has lagged the paperwork. Independent trackers report that only a small fraction of the 50 GWh target had actually been commissioned by end-2025, and much near-term capacity is still pack assembly rather than genuine cell manufacturing. So the price benefit is real but gradual — not an overnight cut.
What this means for you
- Utility-scale developers and DISCOMs (distribution companies): don’t bank on a domestic-cell discount in near-term bids; most cells are still imported. But watch localisation milestones — as PLI plants ramp, currency and duty risk on cell supply should ease.
- C&I and manufacturers: the PLI does not subsidise your project, so today’s economics still rest on system price and use-case returns, not the scheme.
- Everyone: treat the timeline as fluid. Domestic cell supply is a medium-term tailwind for prices, not a reason to delay a project that already pays back.
To pressure-test whether a BESS makes sense for your site at today’s prices, run the numbers on our savings calculator — or talk to our team about sourcing and system design.
Policies and tender terms change by notification. Policy snapshot as of July 2026. Terms change by notification; verify current provisions with MHI/PIB documents before financial decisions.