In a major milestone for India’s advanced battery manufacturing sector,the Ministry of Heavy Industries, Government of India, signed a programmeagreement with Reliance New Energy Battery Limited (RNEBL), a subsidiary ofReliance Industries Limited, for advanced chemical storage battery storagescheme under production linked incentive scheme. Under the agreement, RNEBL willbe provided with 10 GW of ACC capacity after completing the competitive globaltender process and will be eligible for incentive under the centralgovernment's Production Linked Incentive Scheme with a provision of INR 18,100-crore.

The agreement is an important milestone in the implementation of theNational Programme on Advanced Chemical Storage Battery Storage approved by theUnion Cabinet in May 2021, with the objective of increasing productivity up to50 GW for ACC at a cost of INR 18,100-crore. With the signing of the agreement,the four beneficiary companies have been allocated cumulative capacity of 40 GWhours out of 50 GW hours.

At the end of the first round of bidding held in March 2022, 30 GW ofcapacity was allocated to the three beneficiary companies and programmeagreements were signed in July 2022.

The Advanced Chemical Storage Scheme has been designed to promote localvalue addition under the Production Linked Incentive Scheme and ensure that theprice of battery production in India remains globally competitive. The schemeallows the beneficiary companies to use the most suitable technology to set upmodern ACC manufacturing facilities and adopt the requirements for it, therebysupporting the electric vehicle and renewable energy storage sectors.