India launched the Advanced Chemistry Cell Production Linked Incentive (ACC PLI) scheme in October 2021 to build domestic battery manufacturing capacity and reduce India’s reliance on imported lithium-ion cells, primarily from China. With an outlay of INR181 billion (USD2.08 billion), the scheme aimed to establish 50 gigawatt hours (GWh) of advanced battery cell manufacturing capacity in India by 2025. However, as of October 2025, only 2.8% (1.4GWh) of the targeted capacity has been commissioned within the stipulated timeline—all by Ola Electric—shows a new report by JMK Research, and the Institute for Energy Economics and Financial Analysis (IEEFA).
The report, ‘Assessing India’s incentive scheme to enhance the battery manufacturing ecosystem’, provides in-depth analysis of the scheme, its beneficiaries, and progress to date. It identifies key bottlenecks and suggests measures to improve the scheme’s effectiveness.
There is a substantial gap between the intended and actual outcomes of the ACC PLI scheme. Against an estimated 1.03 million jobs, it has generated only 1,118 jobs (0.12% of the target). Investment levels have also lagged, with around INR28.7 billion (USD330 million) committed so far, accounting for 25.58% of the targeted INR112.5 billion (USD1.29 billion).
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“Although strong policy support led to substantial investment announcements and capacity plans outside the ACC PLI scheme, on-ground progress remained sluggish. For beneficiaries, the Centre has imposed a penalty of 0.1% of the performance security for each day of delay in commissioning. Moreover, with India’s dependence on imported battery cells still close to 100%, the scheme’s original objectives remain largely unfulfilled,” says Prabhakar Sharma, senior consultant, JMK Research, and a co-author of the report.
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