Battery PLI may get new spark as rules set to ease

Scheme saw limited success; 50GWh capacity by Dec 2024 goal fell far short

- Rituraj Baruah & Manas Pimpalkhare

India’s ambitious plan to build large-scale manufacturing capacity for advanced chemistry cells (ACCs) used in industrial batteries under its flagship production-linked incentive (PLI) scheme is headed for a significant course correction.

According to two people aware of the matter, the Union heavy industries ministry is weighing extensions and easier localization norms for the beneficiaries of the ₹18,100-crore PLI-ACC scheme that was announced in 2021.

This comes in the backdrop of the scheme’s limited success. The plan was to have 50 giga watt-hour (GWh) of output capacity ready by December 2024, but as of this June, just about 14GWh of Ola was ready, according to data provided by Union heavy industries minister H.D. Kumaraswamy to Mint in an email interview in June.

The first person cited above said that the Centre has recently sent show-cause notices to companies approved under the scheme.

“The request from the companies remains for extension of the deadline by about another 18 months, and the requests are being considered,” this person said, adding that a final decision is yet to be taken.

The second person said the government is also looking at allowing imports of cells at lower duties till companies are ready to develop the cells themselves.