Reliance New Energy Battery signs pact under PLI scheme for 10 GWh battery capacity

The Ministry of Heavy Industries (MHI) on Monday signed an agreement with Reliance New Energy Battery Ltd for the allocation of 10 GWh capacity under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage.

The agreement follows a competitive global tender process and makes the Reliance Industries Ltd subsidiary eligible for incentives under the ₹18,100 crore PLI ACC scheme, the ministry said in a statement on Tuesday.

With this signing, a cumulative capacity of 40 GWh has been awarded to four companies under the scheme, which aims to achieve a total manufacturing capacity of 50 GWh. In the first round of bidding conducted in March 2022, three firms secured a total capacity of 30 GWh, and programme agreements for those allocations were signed in July 2022.

The PLI ACC scheme, approved by the Union Cabinet in May 2021, is designed to boost domestic battery manufacturing while ensuring cost competitiveness on a global scale. The scheme allows beneficiary firms to adopt suitable technologies to establish advanced battery manufacturing facilities, catering primarily to the electric vehicle (EV) and renewable energy storage sectors.

The Union Budget for 2025-26 also introduced several measures to support the domestic battery manufacturing ecosystem, including the exemption of 35 additional capital goods used in EV battery production from Basic Customs Duty (BCD).

The ministry said the initiative has encouraged Indian companies to establish cell manufacturing facilities, with over 10 firms already working on setting up more than 100 GWh of additional capacity.

“The Ministry of Heavy Industries remains committed to creating an enabling environment for innovation, fostering a robust domestic supply chain, and attracting significant Foreign Direct Investment—all crucial elements in advancing India’s strategic vision for sustainable development and self-reliance,” it said.