PolitySource: The Hindu
Implementation Challenges in India's Advanced Chemistry Cell-PLI Scheme
Saturday, 14 February 2026
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Implementation Challenges in India's Advanced Chemistry Cell-PLI Scheme have been highlighted in a recent report. Launched in October 2021, this scheme aims to boost domestic manufacturing of lithium-ion batteries for electric vehicles and energy storage. However, only 30 GWh of the targeted 50 GWh capacity has been allotted, with significant delays in production and job creation.
Detailed Coverage
- ACC-PLI Scheme launched in October 2021 by the Ministry of Heavy Industries.
- Aims to promote manufacturing of next-generation battery cells.
- Focus on lithium-ion batteries for electric vehicles (EVs).
- Objective to develop a domestic battery supply chain.
- Target of 50 GWh battery manufacturing capacity by 2026.
- Financial outlay of ₹18,100 crore.
- Manufacturers offered incentives of up to ₹2,000 per kWh.
- Only 30 GWh capacity allotted, with 1.4 GWh commissioned.
- Incentives of ₹2,900 crore not disbursed due to production delays.
- Only 1,118 jobs created against a projected 1.03 million.
- Production Linked Incentive (PLI) Scheme launched in March 2020.
- PLI aims to boost domestic manufacturing across 14 sectors.
- Incentives based on incremental revenue over five years.
- Encourages R&D investments for global competitiveness.
- Scheme covers sectors like automobiles, electronics, and pharmaceuticals.
- Report uncovers significant implementation challenges in the ACC-PLI scheme.
Polity