India's Battery Scheme Falls Short: Capacity Goals Missed

India's flagship Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme, notified in October 2021, aimed to establish 50 GWh of battery cell manufacturing capacity by 2025. However, as of January 2026, only 2.8% of this target has been commissioned, with just 1.4 GWh operational. This significant shortfall highlights a widening gap between policy ambition and on-ground execution.

Launched with an outlay of ₹18,100 crore, the scheme has faced numerous delays. While capacity targets were allocated, including a second auction in September 2024, timelines have slipped for most beneficiaries. As of October 2025, no incentives had been disbursed against a targeted ₹2,900 crore, and investment commitments only reached ₹2,870 crore, far below the ₹11,250 crore target.

Structural challenges such as stringent domestic value addition rules, aggressive installation timelines, and delays in visa approvals for technical specialists have hampered progress. The scheme has also generated only 1,118 jobs, a stark 0.12% of the 1.03 million target, underscoring the under-delivery on key objectives.

To address these issues, experts call for complementary policies focusing on critical minerals, cell components, and robust testing infrastructure. Attracting global battery players is also deemed crucial for enhancing capabilities and accelerating technology transfer, ensuring India's clean energy ambitions are met.