India battery manufacturing has made slow progress under a ₹18,100-crore government incentive scheme designed to build 50 GWh of advanced chemistry cell capacity. As of February 2026, only 1 GWh of the 40 GWh awarded to manufacturers had been installed, the Ministry of Heavy Industries told Parliament.

Key Takeaways

  • The installed capacity was at Ola Cell Technologies’ facility in Krishnagiri, Tamil Nadu.
  • No beneficiary had claimed an incentive under the scheme as of the ministry’s February reply.
  • A separate tender for large battery systems has a November 10, 2026 bid deadline.

India battery manufacturing falls behind target

The production-linked incentive scheme was launched more than five years before October 2026 to encourage large-scale cell manufacturing and reduce import dependence. Participants were required to achieve at least 25% domestic value addition initially, rising to 60% over five years.

The government awarded 40 GWh of capacity in two rounds to four beneficiaries: Ola Cell Technologies, Reliance New Energy Battery Storage, Reliance New Energy Battery and ACC Energy Storage, associated with Rajesh Exports. The remaining 10 GWh was later put up for fresh bidding.

Ola’s Krishnagiri plant began pilot production in March 2024 and was working to stabilize operations for commercial production, the ministry said.

Imported materials and technology costs pose challenges

Ankur Khaitan, managing director and CEO of TACC, said restrictions on exports of critical equipment and know-how, along with falling global cell prices, have made it harder for new manufacturers to enter the market. He also noted that India is building the technically complex industry from scratch.

Anode and cathode materials, which account for more than 60% of a cell’s cost, remain heavily dependent on imports. Khaitan said domestic cells would continue to carry that import cost base until local production of those materials is established.

Premier Energies Chief Business Officer Vinay Rustagi identified technologies such as sodium-ion batteries as a potential way around some challenges, while cautioning that commercializing new technologies is costly and time-intensive. Outside the incentive scheme, projects totaling 178 GWh have been announced.

Battery systems tender faces questions

In July 2026, the ministry issued a separate tender for manufacturers to establish capacity for large battery systems supporting renewable energy integration and grid balancing. Its responses to pre-bid questions raised concerns about whether bidders had enough clarity on the requirements.

The bid deadline was extended from October 13 to November 10, 2026, with technical bids scheduled to open on November 11. Industry sources attributed the extension to a poor response, but the government had not given a reason.

Next milestone

The next confirmed milestone is the November 11, 2026 opening of technical bids for the large battery systems tender.

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