Markets Desk July 18, 2026 at 04:33 AM 2 min readmarketsbreaking
India Launches Giga-Scale Battery Manufacturing Program To Boost Storage
ACC Battery Storage Program:
India has officially launched a new giga-scale battery manufacturing program under the National Program on Advanced Chemistry Cell (ACC) Battery Storage. The government is now inviting bids from domestic and international companies, public sector entities, and investment funds to establish large-scale manufacturing facilities. This initiative is designed to bolster India’s grid-scale energy storage capacity while reducing dependency on foreign battery cell imports.
Localization and Capacity Goals:
The Ministry of Heavy Industries requires successful bidders to meet stringent localization milestones. Within two years, projects must demonstrate at least 25 percent domestic value addition. This target scales to 40 percent within five years, alongside a minimum manufacturing capacity requirement of one gigawatt-hour (GWh). These requirements aim to build a robust domestic supply chain, with companies opting for either integrated units or hub-and-spoke models to qualify for financial incentives under the program.
Strategic Energy Security:
The program complements the existing policy framework, including the ₹5,400 crore Viability Gap Funding scheme approved in May 2026. With India projected to require over 411 GWh of energy storage by 2031–32, this move is critical for balancing the electricity grid as renewable energy integration expands. By attracting global investment and fostering indigenous tech, the Centre hopes to position India as a global manufacturing hub, contributing directly to the nation’s 2070 net-zero emissions objective.
Pulse Intelligence
Context & ImpactContext & Background
- In May 2026, the Union Cabinet approved a ₹5,400 crore Viability Gap Funding scheme to support 30 GWh of grid-scale battery capacity.
- India faces an estimated storage demand of over 411 GWh by 2031–32 to support its massive renewable energy transition.
Key Consequences
- Successful bidders will gain access to central subsidies tied to manufacturing milestones and domestic value addition.
- State governments will likely provide additional land, tax, and infrastructure incentives to attract these manufacturing clusters.
Market & Economic Impact
The program is expected to drive significant capital expenditure in the power and green energy sectors, boosting domestic manufacturing stocks.

