PLI Schemes for Auto, Auto Components, and Battery Storage
UPSC / SSC current affairs note · Economy
Why in news
The Minister of State for Heavy Industries provided an update in Lok Sabha on the implementation status of PLI schemes for automobiles and advanced chemistry cell battery storage, highlighting investment, employment, and state-wise distribution.
Background
The PLI scheme for automobiles and auto components (PLI-Auto) was approved on 23 September 2021 with a budget of ₹25,938 crore to upgrade manufacturing capabilities for Advanced Automotive Products (AAT). The PLI scheme for Advanced Chemistry Cell (ACC) battery storage was approved in May 2021 with an outlay of ₹18,100 crore for 50 GWh capacity.
Key facts
PLI-Auto scheme has attracted cumulative investment of ₹44,326 crore and created 67,820 jobs as of 31 March 2026.
Incentives worth ₹2,386.36 crore have been disbursed under PLI-Auto.
Under PLI-ACC, no incentive claims have been made yet; investment of ₹5,180 crore and 1,277 direct jobs created as of 31 May 2026.
PLI-Auto has 225 manufacturing units across states; Maharashtra leads with 66 units, followed by Tamil Nadu (38) and Haryana (35).
PLI-ACC has awarded 40 GWh capacity to four companies: ACC Energy Storage (5 GWh, Karnataka), Ola Cell Technologies (20 GWh, Tamil Nadu), Reliance New Energy Battery Storage (5 GWh, Gujarat), and Reliance New Energy Battery (10 GWh, Gujarat).
PLI-Auto is a pan-India scheme; approved applicants can set up units anywhere in the country.
Prelims pointers
- PLI-Auto: approved 23 Sep 2021, budget ₹25,938 crore
- PLI-ACC: approved May 2021, outlay ₹18,100 crore for 50 GWh
- Ministry: Ministry of Heavy Industries
- Lok Sabha written answer by Minister Bhupathiraju Srinivasa Varma
- Key states: Maharashtra (66 units), Tamil Nadu (38), Haryana (35) under PLI-Auto
- ACC beneficiaries: ACC Energy Storage, Ola Cell Technologies, Reliance New Energy Battery Storage, Reliance New Energy Battery
Mains angles
- Discuss the role of PLI schemes in boosting domestic manufacturing and achieving Atmanirbhar Bharat in the automotive and battery sectors.
- Critically examine the challenges in implementation of PLI-ACC, including lack of incentive claims and slow investment.
- Analyze the regional distribution of PLI units and its implications for balanced industrial development.