The Ministry of Heavy Industries (MHI) has confirmed a review of the ₹18,100 crore Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries, following delays in project execution and incentive disbursement.
Launched in May 2021, the PLI scheme sought to build 50 GWh of domestic battery manufacturing capacity by 2029. So far, 40 GWh of capacity has been allocated, but none of the beneficiaries—notably Ola Electric, Reliance Industries, and Rajesh Exports have commenced production or received any incentives.
Government officials say the review will identify root causes of the stalling rollout and consider adjustments to accelerate deployment. Importantly, the allocated capacity is “end-use agnostic,” covering sectors from electric mobility and consumer electronics to railways, defence, and energy storage. The remaining 10 GWh is earmarked for grid-scale storage projects.
Meanwhile, the beneficiaries have formally requested waivers on penalties for missing the stipulated December 2024 commissioning deadline, explaining that a range of execution challenges hindered compliance. The government is weighing these appeals as part of the broader review process.
This review is especially pivotal as India aims to strengthen its battery ecosystem—a critical component in advancing clean energy targets and supporting electric mobility ambitions. A positive outcome could ease implementation bottlenecks and invigorate domestic manufacturing capabilities.
With no funds disbursed so far and key milestones unmet, the review’s direction will be decisive for the future of India’s PLI-driven battery manufacturing roadmap.

