MHI signs agreement with Reliance for 10 GWh ACC capacity
Author: PPD Team Date: February 19, 2025
The Ministry of Heavy Industries (MHI) has signed a Programme Agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries Limited, under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC).
Signed on February 17, 2025, the agreement grants Reliance a 10 GWh ACC manufacturing capacity, making it eligible for incentives under the Rs 181 billion scheme.
With this allocation, the total awarded capacity under the PLI ACC scheme has reached 40 GWh out of the targeted 50 GWh. In the first round of bidding in 2022, three companies secured 30 GWh. The scheme is designed to promote local value addition while ensuring competitive battery manufacturing costs.
The government is also supporting domestic battery production through policy measures, including exemptions on 35 capital goods for electric vehicle (EV) battery manufacturing in the FY2025-26 Budget. Beyond the PLI beneficiaries, over 10 companies are setting up additional capacity exceeding 100 GWh, reinforcing India’s strategy for a self-reliant advanced battery ecosystem.