The National Programme on Advanced Chemistry Cell (ACC) Battery Storage is a Central Sector Scheme, which is a type of government initiative, approved by the Union Cabinet on May 12, 2021, with a budgetary outlay of ₹18,100 crore. The scheme was created to solve the problem of India's heavy dependence on imported Advanced Chemistry Cells (ACCs), which are new-generation storage technologies that convert chemical or electrochemical energy back into electricity. The scheme is administered by the Ministry of Heavy Industries and aims to strengthen the ecosystem for Electric Mobility and Battery Storage in the country.
The mechanism of the scheme is a Production Linked Incentive (PLI), which provides incentives on incremental sales from products manufactured in domestic units. The core provision is to establish a cumulative manufacturing capacity of 50 Giga Watt Hour (GWh) of ACCs in India. To qualify for the incentive, a selected manufacturer must set up an ACC manufacturing facility of a minimum 5 GWh capacity, achieve a domestic value addition of at least 25% within two years, and incur a mandatory investment of ₹225 crore per GWh. The domestic value addition must increase to a minimum of 60% at the project level within five years. The incentive is disbursed over a period of five years following a two-year gestation period, which runs from January 1, 2023, to December 31, 2024, with the performance period from January 1, 2025, to December 31, 2029.
This programme connects directly to the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme and the Automobile PLI scheme, supporting India's shift towards a clean, sustainable Electric Vehicle (EV) ecosystem under the Atmanirbhar Bharat initiative. It also relates to the National Critical Mineral Mission (NCMM), approved on January 29, 2025, which aims to secure a long-term sustainable supply of critical minerals essential for ACC manufacturing. Out of the targeted 50 GWh capacity, 40 GWh has been awarded to four beneficiary firms, with 1 GWh of capacity installed as of March 27, 2026. The scheme is technology-agnostic, allowing firms to choose suitable advanced technologies.