India's ambitious push to scale up domestic production of advanced chemistry cells (ACCs) under its flagship battery PLI programme is headed for a reset, Mint reported, with the government weighing significant relaxations to revive the Rs 18,100-crore scheme.
The Union heavy industries ministry is evaluating proposals to extend deadlines and ease localisation norms for companies selected under the PLI-ACC scheme, Mint wrote, citing two people aware of ongoing deliberations. The scheme-launched in 2021-envisioned 50GWh of output capacity by December 2024. Yet by June this year, only about 1.4GWh of Ola's capacity had materialised, minister H.D. Kumaraswamy told Mint earlier in an emailed interview.
One of the people quoted by Mint said the Centre has issued show-cause notices to approved manufacturers and is now considering industry requests for roughly an 18-month extension. A final decision is still pending. A second person added that the government may temporarily permit lower-duty cell imports until domestic lines are fully established.
Kumaraswamy had also told Mint in June that domestic ACC capability is gradually expanding, with Ola Cell Technologies installing 1.4GWh and more than 10 other companies moving ahead with plans for over 100GWh of combined capacity outside the PLI framework.
The scheme initially allocated 30GWh in 2022-20GWh to Ola Electric, 5GWh each to Reliance New Energy and Rajesh Exports. Reliance secured an additional 10GWh in 2024. Under PLI rules, each beneficiary must invest Rs 225 crore per GWh within two years, and meet 25% localisation levels to start with, rising to 60% within five years. Mint noted that emails sent to the ministry and participating companies remained unanswered.
The PLI-ACC effort now appears to be tracking other incentive schemes where progress has been slower than expected. Mint pointed out that the government has already pushed back the commissioning deadline under the Rs 19,500-crore solar module PLI by a year.
Industry experts told Mint that bottlenecks go beyond individual project delays. China's curbs on graphite exports have disrupted the supply chain, said Debmalya Sen of the India Energy Storage Alliance, who warned that meaningful cell manufacturing in India may still take a couple of years to gather pace. He added that while high import duties can support domestic industry, steep tariffs across the supply chain also erode price competitiveness.
India's reliance on imported batteries remains acute. Debi Prasad Dash of the Net Zero Energy Transition Association told Mint that the country imported over 12GWh of lithium-ion batteries in the past year alone, with demand from EVs and stationary storage likely to multiply three- to five-fold. He cautioned that delays among PLI-ACC beneficiaries-already running a year behind schedule-risk slowing the broader sector.
Dash urged the ministry, in comments to Mint, to set up a single-window mechanism to ease challenges around equipment sourcing, foreign expertise and raw-material availability, arguing that faster indigenisation is essential as demand and geopolitical pressures escalate.
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