PLI Schemes: Powering India’s Green Mobility and Clean Energy Revolution

By Meheli Roy Choudhury

India’s transition to green mobility is being powered by the Production-Linked Incentive (PLI) schemes, which are designed to boost domestic manufacturing, attract investments, and accelerate the adoption of EVs, hydrogen vehicles, and advanced battery storage technologies.

1. PLI Scheme for Automobiles & Auto Components: Building India's Next-Gen Auto Industry

The PLI Scheme for Automobiles & Auto Components is a game-changer for India's green mobility ambitions. With an outlay of ?25,938 crore (FY 2022-23 to FY 2026-27, now extended to 2028), it focuses on: Advanced Automotive Technologies (AAT), Electric Vehicles (EVs), and Hydrogen Fuel Cell Vehicles.

1.1. State of Fund Disbursement (FY 2022-24)

?? Allocated Funds: ?830.64 crore ?? Actual Expenditure: ?8.32 crore

1.2. What Does the Scheme Extension Hold for India?

With #UnionBudget2025 announcing an allocation of ?2,818.85 Cr for FY 2025-26, the scheme is expected to:

?? Support more manufacturing facilities (257 already supported as of December 2024)

?? Drive greater investments & domestic production

?? Attract global & domestic players in auto innovation

Some early challenges may have included delays in application processing, limited availability of compliant products, and high minimum investment requirements. However, as participation increases, India is set to become a global hub for next-gen auto technologies.

2. PLI Scheme for Advanced Chemistry Cell (ACC): Powering India’s Battery Revolution

The PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage is crucial for India’s EV ecosystem, renewable energy integration, and energy security. With an outlay of ?18,100 crore, it aims to establish 50 GWh of ACC manufacturing capacity to reduce import dependence and foster next-gen battery innovations.

2.1. State of Fund Disbursement (FY 2022-24)

?? Allocated Funds: ?27.43 crore ?? Actual Expenditure: ?9.38 crore

2.2. Overcoming Initial Hurdles

While 32.9% of allocated funds remain unspent, the slow fund disbursement may reflect longer project execution timelines, which could be due to:

?? Raw material sourcing challenges ??

?? Scaling up giga-factories ??

?? Meeting localisation & compliance requirements ?? (25% Domestic Value Addition (DVA) by Year 2, 60% by Year 5)

As giga-factories progress from planning to execution, fund utilisation is expected to rise, and #UnionBudget2025’s ?155.76 Cr allocation signals a strong commitment to battery manufacturing.

3. The Road Ahead for PLI-powered Green Mobility and Clean Energy

With a focus on EVs, hydrogen vehicles, and battery storage, India’s PLI schemes are laying the foundation for a globally competitive, self-reliant clean mobility ecosystem. However, efficient fund utilisation, seamless execution, and stronger supply chain integration will be key to realising India's green mobility vision.