PLI Scheme for ACC Battery Storage Sparks Investment Surge, Yet Incentives Remain Unclaimed

Despite attracting Rs 5,180 crore in investments and creating 1,277 jobs, no company has claimed incentives under India's PLI scheme for ACC Battery Storage. Delays in achieving substantial manufacturing capacity are cited as the reason, with Ola Cell Technologies being the sole firm to install capacity so far.

In a surprising revelation, no firm has yet claimed incentives under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) Battery Storage, despite significant investments. Minister of State for Heavy Industries, Bhupathiraju Srinivasa Varma, informed the Lok Sabha that investments have reached Rs 5,180 crore, generating 1,277 direct jobs.

The PLI scheme, launched in May 2021 with an extensive budgetary outlay of Rs 18,100 crore, seeks to establish a substantial manufacturing capacity of 50 GWh. However, the delay in commissioning this capacity has meant that incentives haven't been claimed. As of February, Ola Cell Technologies Pvt. Ltd. was the only entity to install a capacity of 1 GWh.

Minister Varma highlighted that 40 GWh capacity is distributed across four approved projects in various states. ACC Energy Storage Pvt. Ltd. received 5 GWh in Karnataka, Ola with 20 GWh in Tamil Nadu, and Reliance New Energy Battery with 15 GWh split between two projects in Gujarat. Despite incentives remaining unclaimed, investments and job creation underline a growing battery manufacturing ecosystem.