Summary: Ola Cell Technologies, Ola Electric’s battery manufacturing arm, has received a government notice for failing to meet production and investment targets under the PLI ACC scheme, according to Reuters. Ola was selected under the scheme in 2022 to set up a 20 GWh battery manufacturing facility in India.
Reports indicate that Ola Electric, along with Reliance Battery Storage and others, missed their targets and now face financial penalties.
The PLI ACC scheme, with a total outlay of ₹18,100 crore, aims to promote local battery manufacturing for EVs and renewable energy. The government’s action reflects its focus on accountability and timely execution to strengthen India’s domestic battery ecosystem.
This development comes as Ola Electric prepares for its IPO, adding to the challenges the company faces in its Giga Factory plans and broader supply chain strategy.
Ola Cell Technologies, the battery manufacturing arm of Ola Electric, has reportedly received a notice from the Indian government for failing to meet the targets outlined under the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) manufacturing. According to a report by Reuters, the notice was issued after Ola Cell Technologies failed to achieve the milestones it had committed to under the ambitious government program.
In 2022, Ola Electric was selected as one of the beneficiaries of the PLI ACC scheme, securing approval to set up a 20 gigawatt-hour (GWh) battery manufacturing facility in India. The PLI ACC scheme, designed to boost local battery manufacturing and reduce dependency on imports, requires companies to meet strict investment and production targets within defined timelines.
Reports suggest that Ola Electric, along with Reliance Battery Storage and several other beneficiaries, have fallen short of their respective targets under the scheme. As a result, these companies are likely to face financial penalties in line with the provisions of the scheme.
The PLI ACC scheme was introduced with a total outlay of ₹18,100 crore, aiming to promote the development of domestic battery cell manufacturing capabilities critical for India’s clean energy transition, especially for electric vehicles (EVs) and renewable energy storage solutions.
For Ola Electric, which has been a major player in India’s EV market, the notice comes at a time when the company is preparing for its initial public offering (IPO). While the company has made significant progress in the EV space, delays in setting up its Giga Factory and local battery production facilities have raised concerns about its ability to meet regulatory and financial commitments.
The government’s move to hold companies accountable under the PLI scheme highlights its intent to ensure timely delivery and foster a robust local manufacturing ecosystem. The penalties, along with increased scrutiny, are expected to push companies to expedite their infrastructure development and meet future targets more efficiently.
As Ola Electric and other PLI participants work to address these challenges, the incident underscores the growing pressure on India’s EV supply chain to deliver on ambitious sustainability and self-reliance goals.
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