New Delhi, Dec. 1 -- India's ambitious plan to build large-scale manufacturing capacity for advanced chemistry cells (ACCs) used in industrial batteries under its flagship production-linked incentive (PLI) scheme is headed for a significant course correction. According to two people aware of the matter, the Union heavy industries ministry is weighing extensions and easier localization norms for the beneficiaries of the Rs.18,100-crore PLI-ACC scheme that was announced in 2021. This comes in the backdrop of the scheme's limited success. The plan was to have 50 gigawatt-hour (GWh) of output capacity ready by December 2024, but as of this June, just about 1.4 GWh of Ola was ready, according to data provided by Union heavy industries minister H.D. Kumaraswamy to Mint in an email interview in June. The first person cited above said that the Centre has recently sent show-cause notices to firms approved under the scheme. "The request from the companies remains for extension of the deadline by about another 18 months, and the requests are being considered," this person said, adding that a final decision is yet to be taken. The second person said the government is also looking at allowing imports of cells at lower duties till firms are ready to develop the cells themselves. Kumaraswamy had told Mint in June that India's ACC capacity was rising, despite challenges faced by battery makers in meeting timelines under the scheme. "However, with support and hand holding, M/s Ola Cell Technologies Private Limited (OCTPL) has reported successful installation of 1.4 GWh capacity," Kumaraswamy had said. "Apart from the PLI beneficiary firms, more than 10 companies have already started setting up cell manufacturing units for more than 100 GWh capacity." In 2022, 30 GWh of capacity was allotted under the scheme, wherein 20 GWh was allotted to Ola Electric, 5 GWh each to Reliance New Energy-a subsidiary of Reliance Industries-and to Rajesh Exports. Reliance was allotted a further 10GWh in September 2024. Under the scheme, a beneficiary firm has to ensure that local components make up at least 25% of the manufacture, while also making the mandatory investment of Rs.225 crore per GWh for committed capacity within two years. The share of local parts needs to be increased to 60% within five years. Queries emailed to the heavy industries ministry, Reliance Industries, Ola Electric and Rajesh Exports remained unanswered.With this, the PLI-ACC scheme joins other PLI schemes that have failed to gain momentum as initially anticipated. For instance, the Centre has already extended the timeline for commissioning of projects under the Rs.19,500-crore PLI scheme for solar modules by a year, according to a government order. Industry analysts say the challenges run deeper than just project-level delays, and several other factors have contributed as well....