Government enforces local content requirements for battery energy storage systems (BESS) exceeding 100 kWh capacity. This move strengthens domestic manufacturing under the Production Linked Incentive (PLI) scheme. It aims to reduce import dependence on critical EV components.
Local Sourcing Rules Target BESS Scale-Up
New guidelines mandate progressive local value addition for all BESS projects. Developers must source components domestically where possible. The policy covers lithium-ion and other advanced chemistries essential for grid stability and EVs.
Authorities notified the rules to align with Atmanirbhar Bharat goals. This ensures incentives flow only to compliant projects. Industry players anticipate faster localization of cell manufacturing.
PLI Scheme Boosts Investments and Jobs
PLI for advanced chemistry cells now ties funding to local content compliance. Government projects ₹1 lakh crore investments in battery gigafactories. The mandate accelerates supply chain resilience amid global shortages.
This integrates BESS with renewable energy targets of 500 GW by 2030. EV makers gain cost advantages from cheaper, homegrown storage. Startups and OEMs prepare to scale production lines.
