The Indian government invited bids on Wednesday for the development of 10 gigawatt-hours (GWh) of grid-scale energy storage systems under its ₹18,100 crore production-linked incentive scheme for advanced chemistry cell (ACC) manufacturing. The tender will close on October 13, with bids to be opened the following day, according to a statement from the Union heavy industries ministry. A pre-bid conference is scheduled for July 29.
Key Details
This initiative is part of a broader effort to create 50 GWh of capacity under the ACC scheme, which aims to address the country's increasing power demands and support renewable energy deployment. Previously, 10 GWh was earmarked for grid-scale storage. In September 2024, the government awarded 10 GWh of capacity to Reliance Industries Ltd, raising its total to 15 GWh. Other beneficiaries include Ola Electric with 20 GWh and Rajesh Exports with 5 GWh, making up the total of 40 GWh already allocated.
However, the PLI ACC scheme has faced challenges, with no disbursals made so far. Issues cited include a lack of technology, skilled labor shortages, delays in importing machinery, and the unavailability of upstream components, which have hindered developers from meeting targets. As of February 2026, Ola Electric had developed 1 GWh of cell manufacturing capacity, while others had not progressed. Rajesh Exports has also been under scrutiny from the Securities and Exchange Board of India (SEBI) for alleged financial misrepresentation.
Background
Debmalya Sen, president of the India Energy Storage Alliance (IESA), described the 10 GWh grid-scale energy storage tender as "much-awaited" by the industry, indicating a potential boost in capacity development.
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The announcement is likely to affect companies involved in energy storage and battery manufacturing, particularly those bidding for the tender. Increased capacity in this sector could lead to lower energy costs and enhanced renewable energy integration. Investors will watch for updates on the bid results and any subsequent developments in the PLI ACC scheme.