India | Union Cabinet Approves ₹18,000 Crore PLI Scheme for Battery Manufacturing

The Indian Union Cabinet, chaired by the Prime Minister, approved a new Production-Linked Incentive (PLI) scheme on April 13, 2026, aimed at boosting domestic manufacturing of advanced chemistry cell (ACC) batteries. This significant initiative, valued at ₹18,000 crore, is designed to reduce India's import dependence on critical components and accelerate the adoption of electric vehicles across the country.

Scheme Details

The newly approved PLI (Production-Linked Incentive) scheme specifically targets the manufacturing of advanced chemistry cell batteries. According to the Union Cabinet's approval, the total outlay for the scheme is set at ₹18,000 crore. The focus is on creating a robust domestic ecosystem for ACC battery production, a crucial step for India's energy transition and self-reliance in the electric vehicle (EV) sector. Details on the specific disbursement mechanisms and eligibility criteria for manufacturers are expected to be outlined by the Ministry of Heavy Industries.

Government's Rationale

The government's primary objectives for this PLI scheme are two-fold: to significantly reduce India's reliance on battery imports and to actively promote electric vehicle adoption. Government officials stated that bolstering domestic manufacturing capabilities in ACC batteries is essential for long-term energy security and for achieving national goals related to green energy and sustainable mobility. The initiative aligns with the broader 'Atmanirbhar Bharat' (Self-Reliant India) vision, aiming to establish India as a global manufacturing hub for cutting-edge technologies.

Stakeholder Response

Reaction from industry stakeholders, manufacturers, and environmental experts was not immediately available following the Union Cabinet's announcement. Details regarding the scheme's potential impact on the existing battery market and new investment opportunities are anticipated as further information is released.

Implementation & Next Steps

The Union Cabinet has given its approval for the scheme. However, specific details regarding the implementation timeline, including when applications will open for manufacturers and the phased rollout of incentives, were not immediately disclosed. The Ministry of Heavy Industries is expected to formulate detailed guidelines and procedures for the scheme's execution.

Broader Context

This PLI scheme forms part of India's ongoing efforts to stimulate economic growth and develop key industrial sectors, particularly those critical for a sustainable future. It builds upon previous government initiatives aimed at boosting local manufacturing and promoting clean energy technologies. The focus on ACC batteries is particularly timely given the global push towards electric mobility and the strategic importance of energy storage solutions for renewable energy integration.

Key Takeaways

• The Indian Union Cabinet approved a new Production-Linked Incentive (PLI) scheme for advanced chemistry cell (ACC) battery manufacturing on April 13, 2026.
• The scheme is valued at ₹18,000 crore and aims to boost domestic production of ACC batteries.
• Its primary objectives are to reduce India's import dependence and accelerate electric vehicle (EV) adoption across the country.
• The Ministry of Heavy Industries is expected to provide further details regarding implementation and eligibility criteria.

People Also Ask

• What is the new PLI scheme approved by the Union Cabinet?

  The Union Cabinet approved a new Production-Linked Incentive (PLI) scheme specifically for the domestic manufacturing of advanced chemistry cell (ACC) batteries. This scheme is part of India's strategy to promote self-reliance.

• How much funding is allocated to the ACC battery PLI scheme?

  According to the Union Cabinet's approval, the new Production-Linked Incentive (PLI) scheme for advanced chemistry cell battery manufacturing is valued at ₹18,000 crore.

• What is the main purpose of this PLI scheme?

  The scheme's primary purpose is to boost domestic manufacturing of ACC batteries to reduce India's import dependence and to promote the adoption of electric vehicles by ensuring a local supply chain for critical components.

• Which government body is responsible for this scheme?

  The Union Cabinet, chaired by the Prime Minister, approved the scheme. The Ministry of Heavy Industries is typically responsible for such manufacturing incentive schemes and is expected to oversee its implementation.

Last updated: April 13, 2026 10:30 IST