The Ministry of Heavy Industries has launched a tender for 10 GWh of grid-scale battery cell manufacturing capacity under the ₹18,100-crore PLI scheme. This initiative aims to build a dedicated domestic supply chain for stationary storage, reducing reliance on expensive imports. The move targets 2030 energy storage goals by focusing on the specific cost and safety needs of power grids.
The Ministry of Heavy Industries has officially opened the bidding process for 10 GWh of advanced chemistry cell manufacturing capacity, specifically designed for grid-scale stationary storage. By dedicating this capacity to stationary use, the government aims to separate power sector demand from the high-energy needs of the electric vehicle market, allowing for technology and manufacturing processes optimized for electricity grids rather than vehicles.
Bidding Timeline and Process
The tender documentation was released on July 15, 2026. Companies interested in participating must attend a pre-bid conference on July 29, 2026. The final deadline for submitting bids is October 13, 2026, with technical bids scheduled to be opened on October 14, 2026. The government will use a quality and cost-based selection process to evaluate applicants, ensuring that the selected manufacturers possess both the financial stability and technical capability required for large-scale production.
Strategic Importance for the Energy Sector
India’s renewable energy expansion requires massive storage capacity to manage the intermittent nature of solar and wind power. According to the Central Electricity Authority, the country is projected to require over 200 GWh of battery storage by 2030. This new 10 GWh manufacturing pipeline addresses about 5% of that target, serving as an initial step toward building a self-reliant supply chain. Currently, developers of utility-scale storage projects face significant exposure to global freight cost fluctuations and currency risks because most battery cells are imported.
By manufacturing these cells domestically, companies can better manage their project costs. Battery cells and packs represent more than half of the total cost of a storage system. Local production is expected to improve the long-term bankability of energy storage projects, as it provides developers with a more predictable supply of components.
Industry Ecosystem and Potential Participants
The move is set to impact a broad range of companies beyond just battery cell manufacturers. Large conglomerates with existing battery initiatives, such as Reliance New Energy, Tata Group’s Agratas, Exide Energy Solutions, and Amara Raja Advanced Cell Technologies, are likely to monitor the tender requirements closely.
Furthermore, the increase in domestic cell production could drive demand for power electronics and grid integration systems. Companies like Larsen & Toubro, Siemens India, ABB India, Hitachi Energy India, and Schneider Electric India provide the necessary switchgear, power conversion systems, and battery management software that operate alongside these cells.
Challenges and Monitorables
While the government is providing incentives under the production-linked scheme and customs duty relief on manufacturing equipment, the ultimate success of these gigafactories will depend on localized production efficiency and raw material sourcing. Because stationary storage prioritizes cycle life and cost over the energy density required for vehicles, the market may see a shift toward diverse battery chemistries, including sodium-ion options. Investors should track whether the successful bidders can maintain competitive pricing against global players, as well as the progress of the tender toward the October 13 submission date.