- Ola Electric received approval for revised timelines under the ACC PLI scheme through 2031
- The approval unlocks up to ₹7,240 crore in quarterly PLI incentives over a five-year period
- Ola is on track to install 6 GWh battery capacity by the end of the current quarter
Ola Electric has secured a boost for its battery-cell manufacturing plans after the Ministry of Heavy Industries approved revised timelines under the advanced chemistry cell Production Linked Incentive scheme.
The approval gives Ola Electric access to a five-year incentive window through 2031, potentially unlocking up to ₹7,240 crore in quarterly PLI benefits. The move resolves uncertainty over its battery manufacturing milestones and incentive payments.
Ola Electric said it is on track to install 6 GWh of capacity for nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) batteries by the end of the current quarter. The company was originally allotted 20 GWh of capacity under the ₹18,100 crore ACC PLI scheme, but later scaled its plans down to 6 GWh to match demand from its electric vehicle and cell businesses.
The revised timeline gives the company more room to meet the scheme's requirements. Under the programme, manufacturers must increase domestic value addition to 60% over five years. The government had cited shortages of skilled manpower, specialised machinery and technological know-how as factors behind delays.
Also Read: Ola Electric Q1 Review: Brokerages Flag Weak Volumes, Cash Burn
Ola Electric said the revised timeline changes the economics of its cell business by replacing milestone pressure with a five-year quarterly incentive opportunity.
Chairman and Managing Director Bhavish Aggarwal said the company is ahead of the revised schedule and could begin receiving incentives as soon as next quarter, as per Live Mint.
The approval also addresses uncertainty around Ola Electric's PLI eligibility. The company had missed the requirement to invest ₹225 crore per GWh within two years. It had also set aside ₹57 crore as a penalty provision after the government flagged delays, but reversed the provision in its June-quarter results after seeking a waiver.
Ola Electric's auditor, BSR & Co., had flagged the reversal because final government approval had not been communicated by June 30.
With the revised timeline approved, the focus shifts to whether Ola can scale cell production and convert the potential ₹7,240 crore incentive pool into cash benefits.
Also Read: Ola Electric Narrows June Quarter Loss, But Auditor Flags Rs 57 Crore Penalty
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