- Why in news
- On 27 March 2026, the Minister of State for Heavy Industries told the Rajya Sabha that 40 GWh of the 50 GWh PLI ACC capacity is awarded to four firms, and that domestic demand is still met mostly by imports.
- What it is
- The National Programme on Advanced Chemistry Cell (ACC) Battery Storage is a Production Linked Incentive scheme run by the Ministry of Heavy Industries. It gives incentives to firms that set up large-scale ACC manufacturing in India. ACCs are new-generation devices that store electrical energy as electrochemical or chemical energy and convert it back to electricity when needed.
- Approval and outlay
- The scheme was approved in May 2021 with a total outlay of ₹18,100 crore.
- Target capacity
- The scheme aims to build 50 GWh of domestic ACC manufacturing capacity.
- Capacity awarded
- Of the 50 GWh, 40 GWh has been awarded to four beneficiary firms.
- Aim
- The scheme seeks to cut dependence on imported ACCs and build a globally competitive manufacturing ecosystem.
- Technology
- Beneficiary firms report using in-house developed ACC technology.
- Administering ministry
- The scheme is administered by the Ministry of Heavy Industries.
- Implementation challenges
- Firms face limited technology, a skilled manpower gap, dependence on imported critical equipment and no upstream components such as CAM, AAM and electrolyte.
- National Critical Mineral Mission
- Run by the Ministry of Mines, approved on 29 Jan 2025, to secure the critical mineral value chain from exploration to recovery from end-of-life products.
- Outlay and capacity
- Approved in May 2021 with an outlay of ₹18,100 crore to build 50 GWh of domestic ACC capacity.
- Incentive basis
- Incentive depends on the subsidy per kWh quoted by the firm and the percentage of value addition achieved on actual sales.
- Value addition targets
- At least 25% value addition within 2 years at Mother Unit level, rising to 60% within 5 years of the appointed date.
- Technology neutrality
- The scheme is technology agnostic, and superior technologies get higher incentives. R&D spending counts towards investment criteria.
Don’t confuse with PLI ACC vs FAME / PM E-DRIVE: PLI ACC subsidises battery cell manufacturing. FAME and PM E-DRIVE support electric vehicle demand and adoption.
Don’t confuse with PLI ACC vs PLI-Auto: PLI ACC supports making battery cells; PLI-Auto supports automobiles and auto components. Both are run by the Ministry of Heavy Industries.
Don’t confuse with PM E-DRIVE vs PLI ACC: PM E-DRIVE promotes EV adoption through demand-side support; PLI ACC is a supply-side manufacturing incentive.
Don’t confuse with PLI ACC vs FAME/PM E-DRIVE: PLI ACC subsidises domestic battery cell manufacturing; FAME and PM E-DRIVE support demand for electric vehicles.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Local cell manufacturing can cut battery imports and support electric vehicles and grid storage.
- It builds a domestic manufacturing base in a strategic clean-energy technology.
- Builds domestic battery cell capacity, reducing import dependence for EVs and grid storage.
- Supports EV adoption, energy transition and manufacturing jobs.
- Cuts import dependence on battery cells and supports EV and grid storage growth.
Problems
- Domestic demand is still met largely through imports, and installed capacity lags far behind awarded capacity.
- Only 40 of 50 GWh has been awarded, and plant commissioning is slow.
- Slow execution: only ₹3,237 crore invested and 1,118 jobs by Dec 2025 against a large outlay.
- Gaps in technology, skilled manpower and upstream materials (CAM, AAM, electrolyte); critical equipment is imported.
- Meeting the 60% value addition target depends on local supply of critical minerals and materials.
Way forward
- Enforce milestones for commissioning and local value addition.
- Secure raw material supply and build technology capability.
- Secure critical minerals and build upstream material chains through the National Critical Mineral Mission.
- Strengthen battery recycling under the Battery Waste Management Rules and the recycling incentive scheme, and invest in skilling and technology partnerships.
- Build domestic mineral and component supply chains and support R&D to meet value addition targets.
Put in your answer
PLI ACC outlay: ₹18,100 crore for 50 GWh of capacity, approved May 2021.
Award status: 40 GWh awarded to four firms, yet imports still meet most demand.
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The National Programme on Advanced Chemistry Cell (ACC) Battery Storage is a Production Linked Incentive scheme administered by the Ministry of Heavy Industries.
- 2.The scheme aims to establish 100 GWh of domestic ACC manufacturing capacity.
- 3.Domestic demand for ACCs is now largely met by domestic production under the scheme.
Which of the statements given above is/are correct?
True or false?
1 of 16
Statements the way Prelims prints them. Say first, then see the fact.
1.The PLI scheme for ACC battery storage is administered by the Ministry of Heavy Industries.
True. The Ministry of Heavy Industries administers it.
2.The scheme has a total outlay of ₹18,100 crore.
True. The outlay is ₹18,100 crore.
3.The entire targeted capacity under the scheme has been awarded to beneficiary firms.
False. 40 GWh of the 50 GWh has been awarded to four firms.
4.The scheme was approved in May 2021.
True. Approval came in May 2021.
5.The scheme aims to reduce India's dependence on imported ACCs.
True. Cutting import dependence is a stated aim.
6.Domestic demand for ACCs is now largely met by domestic production under the scheme.
False. Domestic demand is still largely met through imports.
7.The PLI scheme on National Programme on ACC Battery Storage is administered by the Ministry of Heavy Industries.
True. The Ministry of Heavy Industries administers it.
8.The scheme aims to establish 50 GWh of domestic ACC manufacturing capacity with an outlay of ₹18,100 crore.
True. Target 50 GWh; outlay ₹18,100 crore.
9.The capacity awarded under the scheme can be used only for electric vehicle batteries.
False. The awarded capacity is end-use agnostic and can serve any application, including EVs.
10.The Ministry of Mines' recycling incentive scheme accepts Lithium Ion Battery scrap as eligible feedstock.
True. Eligible feedstock includes e-waste, LIB scrap and other scrap such as catalytic convertors.
11.The PLI ACC scheme is administered by the Ministry of Heavy Industries.
True. MHI administers the scheme.
12.The scheme targets 50 GWh of domestic ACC manufacturing capacity.
True. Target is 50 GWh.
13.Incentive under the scheme depends on the subsidy per kWh quoted by the firm and the value addition achieved on actual sales.
True. Incentive links to quoted subsidy per kWh and value addition.
14.Beneficiary firms must reach 60% value addition within 2 years of the appointed date.
False. 25% within 2 years; 60% within 5 years.
15.The scheme favours a single prescribed battery chemistry and gives equal incentive to all technologies.
False. It is technology agnostic, and superior technologies get higher incentives.
16.Under Round-2, the scheme period is seven years from the appointed date, including a two-year gestation period.
True. Seven years, first two being gestation.
Written by us from the release, not by UPSC; checked by a second model.
Mains practice
15 marks · 250 words
Only 40 GWh of the 50 GWh capacity under the PLI scheme for Advanced Chemistry Cell battery storage has been awarded, and only ₹3,237 crore had been invested by December 2025 against an outlay of ₹18,100 crore. Examine the challenges in building a domestic battery manufacturing ecosystem in India and suggest a way forward.
Worth revising until Prelims 2027: most news questions come within two years of the event.