The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage. 

PLI Scheme will help in achieving manufacturing capacity of 50 GigaWatt Hour (GWh) of ACC and 5 GWh of Niche ACC with an outlay of Rs. 18,100 crores.

ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required. The consumer electronics, electric vehicles, advanced electricity grids, solar rooftop etc. which are major battery consuming sectors are expected to achieve robust growth in the coming years. 

The National Programme on Advanced Chemistry Cell (ACC) Battery Storage will reduce import dependence and will also support the Atmanirbhar Bharat initiative. ACC Battery Storage manufacturers will be selected through a transparent competitive bidding process and the manufacturing facility would have to be commissioned within a period of two years. The incentive will be disbursed thereafter over a period of five years. 

Each selected ACC battery Storage manufacturer would have to commit to set-up an ACC manufacturing facility of minimum five GWh capacity and ensure a minimum 60% domestic value addition at the project level within five years. Furthermore, the beneficiary firms have to achieve a domestic value addition of at least 25% and incur the mandatory investment Rs. 225 crore/GWh within 2 Years (at the Mother Unit Level) and raise it to 60% domestic value addition within 5 Years, either at Mother Unit, in-case of an Integrated Unit, or at the Project Level, in-case of Hub & Spoke structure. 

The Programme will provide direct investment of around Rs. 45,000 crore in ACC Battery storage manufacturing projects and facilitate domestic value-capture and therefore reduction in import dependence. 

The Programme will provide net savings of Rs. 200,000 to Rs. 250,000 crores on account of oil import bill reduction during the period of this Programme due to EV adoption as ACCs manufactured under the Programme is expected to accelerate EV adoption. It will help in import substitution of around Rs. 20,000 crores every year.