Ministry of Heavy Industries Issues Show-Cause Notice to ACC Energy Storage Under PLI Scheme
The Ministry of Heavy Industries will issue a show-cause notice to ACC Energy Storage for non-compliance with installation deadlines. This action highlights ongoing challenges in India's ₹18,100 crore PLI scheme for Advanced Chemistry Cell battery manufacturing, as beneficiaries struggle to meet production targets.
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ACC Energy Storage Pvt Ltd is set to receive a show-cause notice from the Ministry of Heavy Industries due to missed capacity installation deadlines under the ₹18,100 crore Production Linked Incentive scheme. Despite ongoing regulatory scrutiny from SEBI, which has alleged financial misconduct, the ministry has opted against eviction following legal consultation.
To date, only 1.4 GWh of the 40 GWh target has been installed, with production starting January 1, 2025. A parliamentary panel has suggested extending timelines for beneficiaries facing systemic challenges.
Supply-chain disruptions, largely reliant on imports from China, continue to hinder progress. To mitigate this, the government is considering a new ₹12,000 crore incentive program aimed at boosting local production of battery components.
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