Energetica India Magazine

FEATURE STORY Prateek Srivastava, Business Unit Head, Prostarm highlights another concern. “Immediate attention is required to address issues in cus- toms clearance, where confusion over the applicable BCD persists. Although battery cells, battery packs and containers attract differ- ent duty structures, they often fall under the same HSN code, leading to delays in customs clearance, additional duty payments and penalties for importers.” He further adds, “Unlike the solar industry, the BESS sec- tor remains heavily dependent on China for lithium cells. The market is also highly volatile, with battery cell prices rising sharply in recent months and price validity remaining very limited. As a result, domestic content is expected to remain at only 30-40 percent of the total order value.” Garg further adds, “India also needs a separate PLI for cath- odes, anodes and electrolytes, plus gradual basic customs duty and anti-dumping measures on imported cells, because domestic production of these upstream components is near zero.” Should Batteries Have an ALMM? The success of the Approved List of Models and Manufac- turers (ALMM) in promoting domestic solar module manu- facturing has naturally triggered discussions about whether a similar mechanism should be introduced for batteries. “India may consider an ALMM-type framework or phased domestic content requirements, but implementation should be practical and gradual. It should not immediately restrict reliable global supply chains or increase project costs,” states Shukla. Suman Nag, Head - Commercial & Contracts International Division, Envision Energy India, remarks, “True localisation of battery cells and cell chemistry will require sus- tained investment in R&D alongside manufacturing. Rather than simply replicating the global lithium-ion supply chain, India has an oppor- tunity to build a differentiated com- energetica INDIA- Jul-Aug_2026 50 dated the use of indigenous EMS and 20 percent local con- tent, including EMS. Garg, however, feels that existing incentives are not yet suf- ficient to provide confidence for large-scale BESS manufac - turing investment. As per an IEEFA report, the ACC PLI scheme had commissioned only 1.4 GWh, or 2.8 percent, of its 50 GWh target, attracted INR 2,878 crore of investment, or 25.6 percent of the target, and disbursed zero incentives as of February 2026. “It would be best to redesign domes- tic-value-addition requirements to start at 10-15 percent and increase them over seven to eight years, while reducing the minimum bid size to 1-2 GWh to enable smaller technolo- gy-led manufacturers to participate,” suggests Garg. He further adds, “The objective should be to encourage gen- uine value addition, technology ownership and quality man- ufacturing in India, rather than merely promoting local as- sembly. A transparent, performance-based and time-bound localisation roadmap will give manufacturers the confidence to invest at scale.” Talking about a supportive policy ecosystem, Kabra says, “A list of models and manufacturers (ALMM), along with phased domestic content requirements, can contribute to building domestic manufacturing capacity, if adopted carefully. These policies should help localise production without hindering im- plementation of projects and limiting access to global tech- nology in the initial stages of industrial growth.” Talking about how India can approach implementing ALBM, Garg suggests, “In the first phase, ALBM should apply im - mediately to pack assemblers and system integrators through mandatory safety, warranty, degradation, fire‑safety and cy - bersecurity standards, where domestic capability already ex- ists. Cell‑level domestic‑content rules should come in only af- ter India has at least 10–15 GWh of operational cell capacity across multiple qualified suppliers, aligned with a 10–15 per - cent DVA starting point and a seven‑to‑eight‑year ramp‑up, which in turn requires ALBM, a better‑designed PLI and cal- ibrated import protection to work together.” He further explains, “This way ALBM is introduced first and then linked to a clear, time‑bound DVA trajectory, while complementary mandates and incentives, including targeted R&D collaboration and technology transfer in trade and in- vestment agreements, help domestic cell capacity scale with- out disrupting near‑term BESS deployment.” Beyond Manufacturing: Building an Ecosystem Building a globally competitive battery industry will require investments beyond cell manufacturing, including critical minerals, cathode and anode materials, recycling, testing and certification, fire safety, skilled workforce, R&D and battery management software to strengthen the entire value chain. petitive advantage by advancing next-generation chemistries such as sodium-ion and other emerging technologies that leverage the country’s strengths in research, innovation, and resource availability. Qualified contract manufacturing can play a critical role in accelerating localisation while reducing