Production Linked Incentive (PLI) Scheme For National Programme on Advanced Chemistry Cell (ACC) Battery Storage
State: Central
Ministry: Ministry of Heavy Industries
Department: Department Of Heavy Industry
Category: Business & Entrepreneurship
Beneficiary Type: Industries

The scheme aims to promote giga-scale ACC manufacturing in India. Through this scheme, financial incentives are provided to selected firms to boost domestic battery manufacturing and reduce imports.

Benefits:
1. The scheme provides financial incentives with a total outlay of ₹18,100 crore for a period of 5 years.
1. The subsidy is calculated based on applicable subsidy per kilowatt-hour (kWh), percentage of domestic value addition achieved, and actual sales of Advanced Chemistry Cells (ACCs).
1. Incentives are provided only after the beneficiary firm achieves the committed domestic value addition and starts actual sales of ACCs.
1. The total subsidy is capped at 20% of the ACC sale price (net of Goods and Services Tax - GST).
1. The incentive is provided in the form of direct cash subsidy to beneficiary firms.
1. The subsidy is disbursed on a quarterly basis after commissioning of the manufacturing facility and commencement of sales, and continues for a period of 5 years.
1. The beneficiary firm is required to achieve at least 25% domestic value addition within 2 years and increase it to 60% within 5 years.
1. The incentives under this scheme do not restrict the beneficiary from availing incentives under other schemes such as FAME-II or PLI for Automobile and Auto Components.

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Eligibility:
1. The applicant should be a firm selected as a Beneficiary Firm through a transparent Request for Proposal (RFP) process.
1. The applicant should be allocated Advanced Chemistry Cell (ACC) manufacturing capacity under the scheme.
1. The applicant should commit to setting up a minimum 5 GWh ACC manufacturing facility.
1. The applicant should establish the manufacturing facility within 2 years from the date of award.
1. The applicant should make a minimum investment of ₹225 crore per GWh.
1. The applicant should achieve at least 25% domestic value addition within 2 years.
1. The applicant should increase domestic value addition to 60% within 5 years.
1. The applicant should undertake manufacturing activities in India as per the definition of “manufacture” under the Goods and Services Tax (GST) Act.
1. The applicant should ensure value addition through manufacturing leading to a change in Harmonized System of Nomenclature (HSN) at the 6-digit level.

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Application Process:
[Online]
Step 1: The applicant should wait for the release of the Request for Proposal (RFP) by the Department of Heavy Industry under the scheme.
Step 2: The applicant should access and download the RFP document from the official platform notified by the Department.
Step 3: The applicant should prepare the application as per the RFP guidelines, including:
Technical Bid
Financial Bid
Step 4: The applicant should submit the application through the prescribed online submission system within the specified timeline.
Step 5: The applicant should participate in the Quality and Cost-Based Selection (QCBS) process based on the submitted bids.
Step 6: The applicant should undergo evaluation based on parameters such as committed capacity, value addition targets, and subsidy requirements.
Step 7: Upon selection, the applicant is allocated ACC manufacturing capacity under the scheme.
Step 8: The selected applicant should establish the manufacturing facility within 2 years.
Step 9: After commissioning and commencement of sales, the applicant should submit claims along with required documents through the designated online system.
Step 10: The applicant receives subsidy disbursement on a quarterly basis after verification.

Documents Required:
Document Evidencing Commencement Of Commercial Production (Issued By Director Of Industries)
Statutory Auditor Certificate For Quantity And Value Of Finished Goods Procured
Statutory Auditor Certificate For Breakup Of Major Components In Final Product Value
Statutory Auditor Certificate For Reconciliation Of Production, Sales, Scrap, Stock And GST
Audited Financial Statements For Relevant Financial Year
GST Audit Report For Relevant Financial Year
Self-Certification By Authorized Signatory For End Use Of ACC