The Centre is considering extensions and relaxed localization norms under the ₹18,100-crore PLI scheme for advanced chemistry cell (ACC) batteries as manufacturing targets remain unmet.
Only 1.4 GWh of capacity has been installed so far against the target of 50 GWh by December 2024.
Delays reflect deeper structural challenges such as dependence on imported battery materials and China’s tightened graphite export controls.
The Centre is considering extensions and easier localization norms for beneficiaries of the ₹18,100-crore production-linked incentive (PLI) scheme announced in 2021. The ambitious plan aimed to build large-scale manufacturing capacity for advanced chemistry cells (ACCs) used in industrial applications. However, reports suggest the scheme has yielded only limited success so far.
According to a report by Mint, the target was to have 50 gigawatt-hour (GWh) of output capacity ready by December 2024. As of June 2025, only about 1.4 GWh by Ola was operational. The report cited people familiar with the matter who said the Centre has recently issued show-cause notices to companies approved under the scheme. “The request from the companies is for an extension of the deadline by about another 18 months, and the requests are being considered,” Mint reported, adding that a final decision is yet to be taken.
31 October 2025
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Union Heavy Industries Minister H.D. Kumaraswamy said earlier in June that India’s ACC capacity is rising, even though manufacturers are facing challenges in meeting scheme timelines. “With support and hand-holding, M/s Ola Cell Technologies Private Limited (OCTPL) has reported successful installation of 1.4 GWh capacity,” he said. “Apart from the PLI beneficiary firms, more than 10 companies have already started setting up cell manufacturing units for more than 100 GWh capacity.”
In 2022, 30 GWh of capacity was allotted under the scheme, with 20 GWh allocated to Ola Electric and 5 GWh each to Reliance New Energy and Rajesh Exports. Reliance was allotted an additional 10 GWh last year.
The PLI-ACC scheme now falls in line with other PLI initiatives that have failed to gain the momentum initially expected. The Centre has already extended the commissioning timeline for projects under the ₹19,500-crore PLI scheme for solar modules by a year, according to a government order.
Industry experts cited by Mint says the challenges run deeper than project delays, pointing to hurdles such as China’s tightening of graphite exports and India’s heavy dependence on imported batteries.
