ACC Battery Storage Manufacturing in India: Successful PLI Bids

Posted by Written by Naina Bhardwaj Reading Time: 5 minutes

India had approved bids in late March for four companies to avail incentives under the PLI Scheme for ACC Battery Storage Manufacturing. In July, three of the selected bidders signed the Program Agreement under Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage – Reliance New Energy Solar Limited, Ola Electric Mobility Private Limited, and Rajesh Exports Limited. These companies will receive incentives under India’s INR 181 billion program to boost local battery cell production. Under the battery scheme, selected ACC battery storage manufacturers must set up a production facility within two years. Shortlisted bidders not currently successful in securing allocation have been placed on a waiting list. This article also outlines how the PLI scheme will be implemented and eligibility criteria.

What are ACCs?

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. They will cater not only to electric vehicles but also to the consumer electronics industry, solar rooftops, and electricity grids.

List of approved companies by capacity stated and awarded and the waitlisted candidates

On March 24, 2022, the Ministry of Heavy Industries (MHI) officially notified the four successful bids for the Production Linked Incentive (PLI) Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ (NPACC). They are Reliance New Energy Solar Limited, Ola Electric Mobility Private Limited, Hyundai Global Motors Company Limited, and Rajesh Exports Limited.

However, only three selected bidders – Reliance New Energy Solar Limited, Ola Electric Mobility Private Limited, Hyundai Global Motors Company Limited, and Rajesh Exports Limited – signed the Program Agreement under Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage on July 28, 2022.  The Indian government withdrew its PLI approval for Hyundai Global Motors as it was revealed not revealed not to have any links with the South Korean automaker Hyundai Motor Co and its local subsidiary, Hyundai Motor India Ltd (HMIL). Hyundai Global Motors was also ordered by South Korean court to change its name as it was not authorized to use the trademark name Hyundai; the company now goes by Global Motors Co. Limited.

The following table lists the companies who were selected and waitlisted under the PLI program:



Name of applicant

Capacity quoted



Capacity awarded



Rajesh Exports Limited

5 GWh


5 GWh


Hyundai Global Motors Company Limited

20 GWh

Awarded, later withdrawn

20 GWh


Ola Electric Mobility Private Limited

20 GWh


20 GWh


Reliance New Energy Solar Limited

20 GWh


5 GWh


15 GWh


Mahindra & Mahindra Limited

15 GWh



Exide Industries Limited

6 GWh



Larsen & Toubro Limited

5 GWh



Amara Raja Batteries Limited

12 GWh



India Power Corporation Limited

5 GWh


Application process and evaluation criteria

The Ministry had released the Request for Proposal (RFP) under the PLI scheme on October 22, 2021 following the central cabinet’s approval on May 12, 2021. Applications under the scheme were allowed until the morning (11:00 IST) of January 14, 2022 and technical bids were opened the next day. 

A quality and cost-based selection (QCBS) method was used to evaluate the bids where both the subsidy quoted and the value addition offered by the bidder were be taken into account during the selection process. The selection process was competitive and transparent.

Implementing agencies

The main implementing agencies for the scheme are the Ministry of Heavy Industries and NITI Aayog.

PLI ACC Battery scheme budget and scope

An outlay of INR 181 billion (US$2.49 billion) has been earmarked by the government towards the scheme, which is intended to establish local manufacturing capacity of 50 Giga Watt Hour (GWh) of ACC and five GWh of Niche ACC capacity. 

The program is designed in such a manner that it is technology agnostic. The beneficiary firm shall be free to choose suitable advanced technology and the corresponding plant & machinery, raw material and other intermediate goods for setting up cell manufacturing facility to cater to any application.

How the PLI scheme will work

The incentives under the PLI scheme will be disbursed over a fixed period of five years, from the time of commissioning of the manufacturing facility. This is expected to achieve economies of scale and boost exports, thereby helping large domestic and international manufacturers in setting up a globally competitive ACC battery set-up in India. This in turn is important for the growth of the homegrown electric vehicle (EV) industry.

Breakdown of the NPACC Scheme: Key points

  • Set up 50 GWh manufacturing capacity for ACC batteries by attracting investments totaling INR 450 billion (US$6.20 billion).
  • Each selected ACC battery Storage manufacturer to set-up an ACC manufacturing facility of minimum 5 GWh capacity, achieve a domestic value addition of at least 25 percent and incur the mandatory investment INR 2.25 billion (US$31.02 million) /GWh at ‘Mother Unit Level’ within two years.
  • The ACC battery manufacturer will need to ensure a minimum 60 percent domestic value addition at the Project level within five years.
  • The incentive will be disbursed over a period of five years. It will be paid out on the basis of energy efficiency, sales, battery life cycle, and localization levels.
  • The scheme proposes that the relevant state government, central government, and manufacturer enter into a tripartite agreement where the state government will support the private sector by providing land for setting up the facility, assisting in procuring permits and licenses, providing trunk infrastructure etc.

Expected benefits from the scheme

  • Facilitate demand creation for battery storage in India.
  • Facilitate Make-in-India and Atmanirbhar Bharat, thereby emphasizing domestic value capture and reduction in import dependence.
  • Facilitate demand for EVs, which are proven to be significantly less polluting. One of the key agendas for ACC battery storage will be to reduce India’s Greenhouse Gas (GHG) emissions.
  • Import substitution of around INR 200 billion – INR 250 billion (US$2.76 – US$3.45 billion) every year, on account of oil imports as this scheme is expected to accelerate EV adoption in India.
  • Impetus to research and development to achieve higher specific energy density and cycles in ACC.
  • Promote newer and niche cell technologies.

Which companies submitted bids to the scheme

As per the government, 10 companies submitted their bids under the scheme:

  • Reliance New Energy Solar Limited
  • Hyundai Global Motors Company Limited
  • Ola Electric Mobility Private Limited
  • Lucas-TVS Limited
  • Mahindra & Mahindra Limited
  • Amara Raja Batteries Limited
  • Exide Industries Limited
  • Rajesh Exports Limited
  • Larsen & Toubro Limited
  • India Power Corporation Limited

The selected beneficiary companies had the liberty to choose suitable advanced technology and corresponding plant and machinery, raw material, and other intermediate goods for setting up cell manufacturing facilities.

India’s pivot to clean mobility

ACC battery manufacturing represents one of the leading economic opportunities for several industrial growth sectors in India, such as consumer electronics, EVs, and renewable energy. 

The rapidly growing EV industry, in particular, stands to benefit from this PLI scheme. One of the major factors contributing towards higher costs of EVs in India is the import of ACC batteries.

Another factor that has restricted the EV industry’s growth is lack of supporting infrastructure like charging stations, which is now becoming prioritized by the government. In fact, on March 22, 2022, the Ministry of Heavy Industries approved 2877 charging stations in 68 cities across 25 states/UTs under the Phase-II of the FAME India Scheme (or the Scheme for Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India). Further, MHI approved 1576 EV charging stations across 16 highways and nine expressways under this phase.  

ACC batteries, which display the capability of energy storage, will be key to achieving the goal of round-the-clock supply of power from renewable energy.

The NPACC PLI scheme will aid local capacity building in core competent technologies to make India a hub of clean energy. It will reduce excessive dependence on imports, including from China. A boost to local employment is another vital outcome.

This article was first written on May 28, 2021. It was last updated July 29, 2022. 

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