In News: Recent assessments indicate a significant gap between intended targets and actual outcomes under the ACC-PLI Scheme, particularly in terms of capacity creation and domestic value addition.
About ACC-PLI Scheme
- Launched: October 2021
- Objective: To promote domestic manufacturing of Advanced Chemistry Cells (ACC) used in:
- Electric Vehicles (EVs)
- Renewable energy storage
- Grid-scale batteries
- Target Capacity: 50 GWh of battery cell manufacturing by 2026
- Nodal Ministry: Ministry of Heavy Industries
- Total Financial Outlay: ₹18,100 crore
Key Objectives
- Reduce import dependence, especially on China-dominated battery supply chains
- Develop a full domestic battery ecosystem:
- Cathodes
- Anodes
- Electrolytes
- Cell assembly
- Mobilise private investment and attract global technology partnerships
- Lower battery costs and accelerate:
- EV adoption
- Energy storage deployment
- Generate large-scale employment (over 1 million jobs projected)
Key Features of the Scheme
Incentive Structure
- Incentives linked to actual battery sales
- Maximum subsidy of about ₹2,000 per kWh
- Performance-based and technology-neutral
Investment & Localization Conditions
- Minimum investment: ₹1,100 crore per selected firm
- Domestic Value Addition (DVA) targets:
- 25% within 2 years
- 60% within 5 years
Challenges Observed (Current Affairs Angle)
- Delays in capacity commissioning
- Difficulty in achieving high domestic value addition, especially for cathodes and anodes
- Continued reliance on imported raw materials and technology
- Global supply chain disruptions and high capital costs
Significance for India
- Critical for energy transition and net-zero targets
- Supports Atmanirbhar Bharat and Make in India
- Strategic importance due to batteries being a core input for EVs and renewables
IAS-2026 - OPTIONAL / GEOGRAPHY / PUBLIC ADMINISTRATION / SOCIOLOGY / ANTHROPOLOGY / ORIENTATION ON 03 & 04-10-2025 
