India, Jan. 13 -- The Government of India has issued a release:
M/s Ola Cell Technologies Pvt. Ltd. has established a Giga-Scale ACC manufacturing plant with an installed capacity of 1 GWh. Since March 2024, the firm has commenced pilot production and is presently working toward stabilizing operations for full-scale commercial production.
MHI has notified the Scheme on October 28, 2024 with a total financial outlay of Rs. 3,435.33 crore, aims to ensure payment security for OEMs/operators in case of default by Public Transport Authorities (PTAs) for e-bus procurement and operations under Gross Cost Contract (GCC) or similar models. Covering 38,000 or more e-buses for up to 12 years, the scheme includes mechanisms such as Escrow Accounts and Direct Debit Mandates (DDM) with RBI to recoup funds in case of non-payment. PTAs are required to repay disbursed funds within 90 days. MHI has designated Convergence Energy Services Limited (CESL) as the implementing agency and formed a Steering Committee for monitoring. The scheme supports sustainable urban mobility by fostering private investment and promoting risk management in e-bus adoption. The detailed Standard Operating Procedures (SOPs) has been issued.
The scheme has attracted an investment of Rs. 2,878 crore and employment of 1,118 till 30.10.2025.
As of 22nd December 2025 the Direct Debit Mandate (DDM), which is an essential requirement under the Scheme, is submitted to Reserve Bank of India (RBI) by 15 State/UTs (Gujarat, Karnataka, Rajasthan, Punjab, Telangana, Andhra Pradesh, Madhya Pradesh, Meghalaya, Maharashtra, Uttarakhand, Odisha, J&K, Puducherry, Assam and Manipur), who have participated in either PM E-DRIVE Scheme of MHI or PM-eBus Sewa Scheme of MoHUA.
Production-Linked Incentive (PLI) Scheme for Advance Chemistry Cell (ACC) Battery Storage: The Ministry of Heavy Industries is administering the Production Linked Incentive (PLI) scheme namely "National Programme on Advanced Chemistry Cell (ACC) Battery Storage," approved in May 2021 with a total outlay of Rs. 18,100 crore to establish 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity. Total scheme period is 7 years with first 2 years as gestation period and next 5 years as performance period.
On January 25, 2022, the Ministry of Heavy Industries (MHI) has notified the Scheme on Enhancement of Competitiveness in The Indian Capital Goods Sector- Phase-II for providing assistance to Common Technology Development and Services Infrastructure. The scheme has a financial outlay of Rs. 1207 crores with budgetary support of Rs.975 crore and Industry Contribution of Rs.232 crore. There are six components under the Scheme for Enhancement of Capital Goods Sector Phase II, namely:
Out of total targeted ACC capacity of 50 GWh, 30 GWh capacity has been awarded during round-1 of the bidding to 3 beneficiary firms viz. M/s ACC Energy Storage Pvt. Ltd. (5 GWh); M/s Ola Cell Technologies Pvt. Ltd. (20 GWh) & Reliance New Energy Battery Storage Ltd. (5 GWh) and 10 GWh capacity has been awarded during round-2 of the bidding to 1 beneficiary firm i.e. M/s Reliance New Energy Battery Ltd. The remaining 10 GWh capacity has been earmarked for Grid Scale Stationary Storage applications.
Under Phase II of the Scheme, a total of 29 projects with project cost of Rs. 891.37 crores and Govt Contribution of Rs. 714.64 crore have been sanctioned so far. These 29 projects include 7 Centres of Excellence (CoEs), 4 Common Engineering Facility Centres (CEFCs), 6 Testing and certification centres, 9 Industry Accelerators for Technology development and 3 projects for Creation of Qualification Packs for skill level 6 and above.
The key initiatives/achievements/events of Ministry of Heavy Industries (MHI) during the year are as under-
The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry, with a budgetary outlay of Rs. 25,938 crore aims to enhance India's manufacturing capabilities for Advanced Automotive Technology (AAT) products, overcome cost disabilities and build a robust supply chain. Approved on 15.09.2021 the scheme covers the period FY 2023-24 to FY 2027-28, with incentive disbursements from FY 2024-25 to FY 2028-29. The scheme offers incentives of 13%-18% for Electric Vehicle and Hydrogen Fuel Cell components and 8%-13% for other AAT components. There are 82 approved applicants, with an estimated investment of Rs. 42,500 crore, incremental sales of Rs. Rs. 2,31,500 crore, and
1.48 lakh jobs over five years.
Under the PLI-Auto Scheme, cumulative investment of Rs.35,657 crore and cumulative determined sales of Rs.32,879 crore has been achieved till 30.09.2025. Further, employment of 48,974 number has been generated.
Under the PLI-Auto Scheme, FY 2023-24 was the first performance year, claims of Rs.322 crore were disbursed in FY 2024-25 and for performance year 2024-25, claims of Rs.1,999.94 crore has been disbursed.
Under the scheme, till 31.12.2025, incentives have been provided for a total of 13,61,488 units ( i.e. 10,42,172 units of electric two-wheelers (e-2W), 2,38,385 units of electric three- wheelers (e-3W), 79,540 units of electric four-wheelers (e-4W), and 1,391 electric buses (e- buses). PLI Auto scheme incentivises only those products which achieve Domestic Value Addition (DVA) of minimum 50%. As of 31.12.2025, eight (8) applicants under the Champion OEM category have received Domestic Value Addition (DVA) certification for 94 variants, while ten (10) applicants under the Component Champion category have received DVA certification for 37 variants.
PM E-DRIVE Scheme: PM E-DRIVE Scheme has been launched on 29.09.2024 with an outlay of Rs.10,900 crore. The EMPS-2024 has been subsumed under the PM E-DRIVE Scheme, and the implementation period under the PM E-DRIVE scheme was initially for a period of two years i.e. 01.04.2024 till 31.03.2026. Subsequently, MHI notified extension of
the PM E-DRIVE scheme until 31.03.2028. However, terminal date for e-2W and e-3W has been retained at 31.03.2026.
The objective of PM E-DRIVE scheme is to promote faster adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing eco- system in the country.
The allocation includes Rs.3,679 crore for subsidies to incentivize more than 28 lakh EVs including 24.79 lakh e-2Ws, 3.28 lakh e-3Ws [2.89 lakh e-3Ws L5 & 39,034 e-rickshaws & e-carts], e-ambulances and 5,643 e-trucks; Rs.4,391 crore for deployment of 14,028 e-buses by public transport agencies; Rs.2,000 crore for setting up of adequate number of EV public charging stations; Rs.780 crore for upgrading testing agencies and Rs.50 crore towards administrative expenses.
Achievements made under PM E-DRIVE scheme are as under:
The Scheme to Promote Manufacturing of Electric Passenger Cars (SMEC) MHI has notified the Scheme on March 15, 2024 aiming to attract global investments, promote India as a manufacturing hub for electric vehicles (e-4Ws) and boost domestic value addition (DVA). Approved applicants are required to invest a minimum of Rs. 4,150 crore (USD 500 million) within three years, achieving 25% DVA during this period and 50% within five years. The scheme allows limited imports of e-4Ws at reduced customs duty, capped at 8,000 vehicles per year, with a total duty foregone per applicant limited to Rs. 6,484 crore or the committed investment. The initiative aligns with "Make in India," encouraging indigenous manufacturing and employment generation while integrating with the PLI-Auto scheme.
Disclaimer: Curated by HT Syndication.
