Ola Electric secures Rs 7,240 crore incentive under PLI scheme

Ola Electric Mobility said the Ministry of Heavy Industries has extended timelines for its battery unit under the ACC PLI scheme, allowing it to access up to Rs 7,240 crore in cumulative incentives over a five-year window through 2031.

PLI Scheme Timeline Extended for Battery Unit

Ola Electric Mobility said on Wednesday that the Ministry of Heavy Industries has extended timelines under the ACC Production Linked Incentive (PLI) scheme for its battery unit, securing a five-year incentive window through 2031 and allowing the company to access up to Rs 7,240 crore in cumulative incentives.

The incentives will be disbursed quarterly from the next quarter, giving Ola Electric a recurring incentive stream as it scales its cell-manufacturing business, the company said in a stock exchange filing.

Revised Timelines and Capacity Expansion

The revised timelines apply to Ola Electric's wholly owned subsidiary Ola Cell Technologies and its 20 GWh allocation under the ACC PLI scheme. The company said the government decision effectively extends the original timelines by two years.

Ola Electric currently has 2.5 GWh of installed cell-manufacturing capacity, with another 3.5 GWh under installation. It expects to reach 6 GWh by the end of the current quarter, ahead of the revised December 2026 deadline for the initial capacity milestone.

Chairman on Economic Transformation

The company said the revised timeline will allow it to access the full five-year incentive window as it expands its cell business. "The revised timeline is more than an extension. It transforms the economics of our cell business by converting an earlier milestone overhang into a five-year, quarterly PLI opportunity of up to Rs 7,240 crore," Ola Electric Chairman and Managing Director Bhavish Aggarwal said.

Aggarwal said the company had not factored incentives into its business projections after exceeding the original timelines and that it is now ahead of the revised schedule.

Focus on Technology and Indigenous R&D

Ola Electric is developing a cell platform covering NMC and LFP technologies, with a focus on indigenous research and development, localisation of battery materials, manufacturing yield and recovery of materials.

The company said its cell-manufacturing capacity will support its broader energy roadmap and expansion towards 20 GWh.

Broader Impact on Energy Security

The company said lithium cells have applications across electric mobility, energy storage, drones, robotics and other industrial systems, and that domestic cell manufacturing can support energy security and technology development in India. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)