The Ministry of Heavy Industries updated Parliament on the ongoing implementation of the Production Linked Incentive (PLI) scheme for advanced battery manufacturing. In a written reply to lawmakers, the government said the programme, launched to strengthen India’s domestic battery production ecosystem, remains underway with several milestones achieved and challenges noted.
The ministry highlighted that the scheme — aimed at boosting local Advanced Chemistry Cell (ACC) battery production — has already allocated significant manufacturing capacity to multiple companies. These allocations are intended to support a range of end uses, including electric vehicle deployment and energy storage solutions, as part of the country’s broader drive towards clean mobility and energy transition.
According to the update, firms participating in the scheme have made notable investments in setting up manufacturing facilities and have started creating jobs within the sector. Participation under the programme has attracted interest from both domestic and global investors, reflecting industry confidence in India’s manufacturing potential.
Despite progress, the government noted that actual production installations are still at an early stage. Several beneficiary companies have begun infrastructure development and capacity building, but actual output and commercial operations are only just beginning to take shape across the industry. Officials acknowledged that this reflects the normal gestation period for large-scale manufacturing projects.
Ministry representatives also pointed to a number of operational hurdles faced by participants. These include limited availability of certain advanced technologies, shortages of skilled labour, and heavy reliance on imported inputs — factors that can slow the pace of establishing full-scale production in the country.
To complement the PLI ACC scheme and promote the wider electric mobility ecosystem, the government is simultaneously implementing related initiatives. These include measures to support electric vehicle adoption, auto component manufacturing incentives, battery recycling frameworks and efforts to secure critical minerals needed for battery value chains, all aimed at building a more self-reliant industry.
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