Advanced Chemistry Cell Production Linked Incentive (ACC-PLI) Scheme

Advanced Chemistry Cell Production Linked Incentive (ACC-PLI) Scheme Latest News

Recently, it was observed that there is a substantial gap between the intended and actual outcomes of the Advanced Chemistry Cell Production Linked Incentive (ACC-PLI) scheme.

About Advanced Chemistry Cell Production Linked Incentive (ACC-PLI) scheme

• It was launched in October 2021 to catalyse domestic manufacturing of next-generation battery cells. 
• It is aimed to set up 50 gigawatt hour (GWh) of battery cell manufacturing capacity by 2026.
• It is also aimed to build a local battery supply chain (cathode, anode, electrolyte) to reduce import dependence, mobilising private investments and global tech partnerships, lowering battery costs, and accelerating electric vehicle (EV) and energy storage adoption.
• Nodal Ministry: It was launched by the Ministry of Heavy Industries.
• Total Outlay: With a total financial outlay of Rs. 18,100 crore.

‹ ›

Features of Advanced Chemistry Cell Production Linked Incentive (ACC-PLI) scheme

• Incentives: Under the scheme, selected manufacturers were promised incentives linked to actual battery sales, with a maximum subsidy of about Rs. 2,000 per kilowatt-hour. 
• Companies were required to make a minimum investment of Rs. 1,100 crore and meet phased domestic value-addition targets, 25% within two years and 60% within five years.
• Beyond capacity creation, the policy intended to develop a complete battery supply chain covering cathodes, anodes, electrolytes, and cell assembly, while also generating over one million jobs.

Source: TH