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News: The ACC-PLI scheme has attracted attention after a report by Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research and Analytics pointed out delays, slow commissioning, and several difficulties in implementation.
About Advanced Chemistry Cell Production Linked Incentive (ACC-PLI) Scheme
- The ACC-PLI scheme aims to promote domestic manufacturing of advanced battery cells in India.
- Type: It is a Central Sector Scheme.
- Launched by: It was launched by the Ministry of Heavy Industries.
- Launched in: It was launched in October 2021.
- Total outlay: The scheme has a total outlay of ₹18,100 crore for establishing 50 GWh of Advanced Chemistry Cell manufacturing capacity.
- Aim: It aims to reduce import dependence, build a local battery supply chain, mobilise private investment, and support electric vehicle and energy storage adoption.
- Key Features
- Localization: The scheme mandates 25% domestic value addition within two years and 60% within five years.
- Monitoring: The scheme is monitored by the Empowered Group of Secretaries chaired by the Cabinet.
- Target: It targets 50 GWh manufacturing capacity and an additional 5 GWh for niche ACC technologies.
- Incentive: Annual cash subsidy is capped at 20 GWh per beneficiary, with a maximum of ₹2,000 per kWh.
- Exclusion: Incentives are not provided to conventional battery pack manufacturing already present in India.
