PLI ACC Battery Storage Scheme — ₹18,100 Cr Subsidy for Giga-Scale Plants
A Ministry of Heavy Industries PLI scheme that pays cash subsidies, capped at 20% of ACC sale value, to firms building giga-scale Advanced Chemistry Cell battery plants in India.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Ministry of Heavy Industries (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The National Programme on Advanced Chemistry Cell (ACC) Battery Storage is backed by a Production Linked Incentive scheme run by the Department of Heavy Industry under the Ministry of Heavy Industries and Public Enterprises. In practice, the government pays out cash subsidies to companies that put up large-scale ACC cell manufacturing plants on Indian soil.
The design is about scale plus genuine local content. The programme is built around 50 GWh of ACC manufacturing capacity, with a further 5 GWh set aside for niche technologies. Indian and overseas investors alike can compete for that capacity, and the intended outcome is a sturdier domestic battery supply chain serving electric vehicles and energy storage, with fewer cells arriving from outside the country.
Entry is competitive rather than form-based. Capacity is allotted through a Request for Proposal, and a company that wins an allocation is treated as a Beneficiary Firm. From the award date it has 2 years to get the plant commissioned; the subsidy then runs for 5 years and is tied to the cells it actually sells and the local value addition it manages to achieve.
The overall outlay is ₹18,100 crore, and each beneficiary is expected to invest at least ₹225 crore for every GWh of capacity it commits to. Because the support arrives as a subsidy and not as a stake, it does not dilute promoter ownership.
Highlights
- Total outlay of ₹18,100 crore, disbursed over 5 years
- Subsidy capped at 20% of ACC sale price, net of GST, paid quarterly
- Minimum commitment of a 5 GWh facility within 2 years of award
- Minimum investment of ₹225 crore per GWh
- Domestic value addition must reach 25% in 2 years and 60% in 5 years
- Capacity on offer: 50 GWh plus 5 GWh for niche technologies
Who can apply
Eligibility here is decided by the RFP rather than by an open application form. A company qualifies only after the Department of Heavy Industry selects it as a Beneficiary Firm and allots it ACC manufacturing capacity. Both domestic and foreign investors are permitted to bid.
The conditions a selected firm must meet are:
- Being chosen as a Beneficiary Firm through the official RFP and allocated ACC manufacturing capacity.
- Committing to a facility of at least 5 GWh, commissioned within 2 years of the award date.
- Investing a minimum of ₹225 crore per GWh of capacity.
- Achieving 25% domestic value addition within 2 years, rising to 60% within 5 years.
- Manufacturing in India as defined under the GST Act, resulting in a change of HSN classification at the 6-digit level.
PLI ACC Battery Storage Scheme — ₹18,100 Cr Subsidy for Giga-Scale Plants is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
PLI ACC Battery Storage Scheme — ₹18,100 Cr Subsidy for Giga-Scale Plants accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
The support takes the form of a direct cash subsidy. Beneficiary firms receive money — they do not hand over equity and do not repay a loan.
- ₹18,100 crore is the total scheme outlay, spread across 5 years.
- The subsidy rate is applied per kilowatt-hour (kWh) of Advanced Chemistry Cells sold.
- The payout scales with the domestic value addition the firm has achieved and with its actual ACC sales.
- The subsidy is capped at 20% of the ACC sale price, net of GST.
- Payments are made every quarter for 5 years, starting once the plant is commissioned and sales begin.
- Disbursement stays conditional on hitting the value addition milestones: 25% within 2 years, 60% within 5 years.
Firms drawing this subsidy are not barred from other government incentives — FAME-II and the PLI for Automobile and Auto Components remain open to them.
About the provider
PLI ACC Battery Storage Scheme — ₹18,100 Cr Subsidy for Giga-Scale Plants is offered by Ministry of Heavy Industries, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Selection is handled by the Department of Heavy Industry through a transparent Request for Proposal mechanism, using Quality and Cost-Based Selection (QCBS).
- The Department releases an RFP, and applicants download the document from the official platform.
- Each applicant prepares a Technical Bid and a Financial Bid in line with the RFP guidelines.
- Both bids are submitted through the designated online submission system within the specified timeline.
- Under QCBS, the bids are evaluated on the manufacturing capacity the firm commits to, the domestic value addition it proposes, and the subsidy it requests.
- Selected firms are allotted ACC manufacturing capacity and become Beneficiary Firms.
- The beneficiary then has 2 years from the date of award to establish and commission the facility.
- Once sales commence, claims are filed through the online system along with the required supporting documents for verification.
- Verified claims are released as quarterly subsidy payments over 5 years.
Documents you’ll need
Before you apply to PLI ACC Battery Storage Scheme — ₹18,100 Cr Subsidy for Giga-Scale Plants, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Frequently asked questions
How much funding can a company actually receive under this scheme?
The scheme carries a total outlay of ₹18,100 crore, disbursed over 5 years. What an individual beneficiary receives depends on the applicable subsidy rate per kilowatt-hour of cells sold, the domestic value addition it achieves, and its actual ACC sales — but the subsidy is capped at 20% of the ACC sale price, net of GST.
Is there a deadline to apply?
The scheme is listed as rolling and always open, but the practical entry point is a Request for Proposal issued by the Department of Heavy Industry. Applications are prepared and filed during a live RFP window, so the thing to watch for is the release of that RFP.
Who is eligible to become a beneficiary firm?
A firm becomes eligible by being selected through the RFP and being allotted ACC manufacturing capacity. It must then commit to a facility of at least 5 GWh, commissioned within 2 years of the award, invest at least ₹225 crore per GWh, and meet domestic value addition targets of 25% within 2 years and 60% within 5 years. Manufacturing has to happen in India as defined under the GST Act, producing an HSN change at the 6-digit level. Both domestic and foreign investors can take part.
Does this scheme take equity in my company?
No. The support is structured as a direct cash subsidy paid to the beneficiary firm, so it is non-dilutive — no stake in the business is handed over and nothing has to be repaid.
Do I need DPIIT recognition or MSME registration to apply?
Neither DPIIT recognition nor MSME registration appears among the stated eligibility conditions. Entry into the scheme happens through the RFP route, and the criteria that matter are the committed manufacturing capacity, the investment per GWh, the value addition targets and manufacturing in India under the GST Act.
How is the subsidy calculated, and when is it paid out?
The subsidy is worked out using the applicable rate per kilowatt-hour, the share of domestic value addition achieved and the volume of ACCs actually sold, subject to a ceiling of 20% of the ACC sale price net of GST. It is paid every quarter for 5 years, beginning after the facility is commissioned and sales commence, and it continues only while the value addition targets are being met.
What does the selection process look at?
Applications go through a Quality and Cost-Based Selection process in which a Technical Bid and a Financial Bid are both evaluated. The parameters considered are the manufacturing capacity the applicant commits to, the domestic value addition targets it proposes, and the subsidy it has asked for.
How long do I get to build the facility?
A beneficiary firm has 2 years from the date of award to establish the ACC manufacturing facility. The incentive period of 5 years begins only after the plant is commissioned and sales of cells start.
How much manufacturing capacity is being created under the programme?
The programme envisages 50 GWh of ACC manufacturing capacity, plus an additional 5 GWh dedicated to niche technologies. That capacity is what applicants compete for through the RFP.
Can a beneficiary also claim other government incentives?
Yes. Firms receiving incentives under this PLI scheme are not restricted from availing incentives under other government schemes, such as FAME-II or the PLI for Automobile and Auto Components.
How do I apply, and what does the application involve?
Wait for the Department of Heavy Industry to release the RFP, then download the document from the official platform. You prepare a Technical Bid and a Financial Bid following the RFP guidelines and submit both through the designated online submission system within the stated timeline. The bids then go through the QCBS evaluation, and successful applicants are allotted ACC manufacturing capacity as Beneficiary Firms.
Who offers PLI ACC Battery Storage Scheme — ₹18,100 Cr Subsidy for Giga-Scale Plants?
PLI ACC Battery Storage Scheme — ₹18,100 Cr Subsidy for Giga-Scale Plants is offered by Ministry of Heavy Industries, a government body. It is provided as non-dilutive funding.
More funding from Ministry of Heavy Industries
Ministry of Heavy Industries runs 2 other programs listed on startupfunds — compare them before you decide where to apply.
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