PLI Scheme Notices to Ola, Reliance, and Rajesh Exports
The Ministry of Heavy Industries (MHI) has issued notices to Ola, Reliance New Energy Limited (RNEL), and Rajesh Exports regarding the Production Linked Incentive (PLI) scheme for battery manufacturing.
Penalties for Non-Compliance
- The notices specify a token penalty due to failure in meeting targets under the National Programme on Advanced Chemistry Cell (ACC) Battery Storage PLI scheme.
- Penalties are in proportion to the investment commitment and expected incentives.
- Ola Electric Mobility: Required to pay ₹12.5 lakh per day from January 1, 2025, until commitments are met.
- Reliance New Energy Limited (RNEL) and ACC Energy Storage (Rajesh Exports): Each must pay ₹5 lakh per day.
- The cumulative penalty amount will be deducted from future benefits.
Scheme Background and Current Status
The penalties aim to expedite the achievement of battery manufacturing targets rather than collect fines. Companies are allowed to represent their case for relaxations.
- In February, it was reported that the companies failed to meet investment and domestic value addition conditions.
- This resulted in a reduction of the scheme’s outlay to ₹15.42 crore in the revised estimates from ₹250 crore in the budgetary estimates for fiscal 2024-25.
National Programme on ACC Battery Storage
- Launched in 2021 with an outlay of ₹18,100 crore.
- The first round of bidding concluded in March 2022.
- Ola Electric claims to start commercial production in Q1 FY26, aiming to be the first to manufacture lithium-ion cells under the scheme in India.
