Nodal agency: Department of Heavy Industries

Policy brief

Department of Heavy Industries has issued guidelines for selection of companies for providing production volume-linked incentive for manufacturing of advanced chemistry cell battery storage equipment.

Key highlights

Summary   Selection through competitive bidding process based on manufacturing capacity and amount of subsidy sought (INR/ kWh).
Target Set up cumulative 50 GWh for ACCs and 5 GWh for Niche ACC technologies battery manufacturing capacity by March 2024
Budget INR 181 billion (USD 2.5 billion) for disbursement between FY 2025 and FY 2029
Eligibility ACC technologies: Specific density of more than 50 Wh/ kg 
Niche ACC technologies: Specific density and/ or battery life exceeding specified levels for ACC technologies
Key conditions Minimum 25% domestic value addition;
Minimum 5 GWh manufacturing capacity for ACC technologies; 0.5 GWh for niche ACC technologies;
Maximum capacity of 20 GWh per company;
Minimum investment of INR 2.25 billion/ GWh (USD 30 million/ GWh);
Subsidy disbursement to start after commencement of production; 
Minimum domestic value addition of 60% within 5 years;
Subsidy disbursement Subsidy would be disbursed every quarter on the basis of bid amount, domestic value addition and actual sales subject to a maximum of 20% of revenue.



Notification release date

9 June 2021

Policy status


Policy documents