India Opens Bidding for 10 GWh ACC Battery Projects
The Indian government has taken another major step towards strengthening its domestic battery manufacturing industry by launching the bidding process for the remaining 10 GWh capacity allocated for Grid Scale Stationary Storage (GSSS) under the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) Battery Storage Production. With the rapid expansion of renewable energy and electric mobility, this initiative is expected to bolster India’s energy security, reduce dependence on imports, and create new jobs in the clean energy sector.
Bidding Process in Final Stages
According to sources from the Ministry of Heavy Industries (MHI), bids for this capacity are in the advanced stage of finalisation. This follows the recent Round-2 bidding process, in which Reliance Industries Ltd was awarded a Letter of Award (LoA) for 10 GWh capacity on 6 September 2024. The signing of the Programme Agreement for this project is also nearing completion. The government’s accelerated efforts in finalising these contracts highlight its commitment to scaling up domestic battery manufacturing, which is a critical component of India’s clean energy transition. PLI-ACC Scheme: Powering India’s Battery Industry, The PLI-ACC scheme, officially called the “National Programme on Advanced Chemistry Cell (ACC) Battery Storage Production,” was approved in May 2021 with a financial outlay of ₹18,100 crore for a total 50 GWh ACC capacity.
In the first round of allocations, three companies were awarded projects:
OCTPL (Ola Electric)
Reliance New Energy Battery Storage Ltd (RNEBSL)
AESPL (Rajesh Exports)
Together, these firms are setting up manufacturing facilities for 30 GWh of ACC capacity. As of December 2024, they have invested ₹1,575 crore and generated 889 jobs, marking significant progress in India’s battery production landscape.
Advancing Domestic Battery Manufacturing
MHI officials have reported steady progress in the setup of manufacturing plants:
AESPL has completed prototype testing and placed orders for key machinery.
OCTPL has commissioned 1 GWh capacity, produced over 40,000 ACCs, and is stabilising its production process. The company is manufacturing NMC chemistry-based cells and is expanding to 5 GWh capacity. Reliance New Energy Battery Storage Ltd (RNEBSL) has secured land for its plant and plans to manufacture both mobility and stationary storage cells. These advancements strengthen India’s capacity to locally produce high-quality ACC batteries, reducing dependence on imported energy storage solutions. Union Budget 2025-26: A Boost for the Industry, The Union Budget 2025-26 introduced key measures to support India’s ACC battery manufacturing sector, particularly in reducing costs and improving competitiveness.
The budget exempts basic customs duty (BCD) on:
Capital goods essential for battery manufacturing
Critical minerals like lithium, nickel, and cobalt
Lithium-ion battery waste and scrap
Currently, these imported minerals are subject to 5-10% customs duty. Removing this duty will lower input costs, enhance profit margins, and make Indian-made ACC batteries, electric vehicles, and energy storage systems more affordable. Additionally, the budget exempts 35 new capital equipment items, adding to the 22 items previously exempted. This move significantly reduces the cost of setting up battery manufacturing plants, making India’s lithium-ion battery industry more competitive against global players like China and South Korea.
The Road Ahead for India’s Battery Industry, As India accelerates its transition towards clean energy and e-mobility, advanced battery storage solutions will play a crucial role. The government’s PLI-ACC scheme and budgetary incentives are creating an ecosystem that fosters domestic production, technological innovation, and investment in battery manufacturing. With the latest bidding round underway, India is moving closer to achieving its goal of energy self-reliance, reducing import dependency, and positioning itself as a global leader in battery production.
