Ola Electric can now access up to Rs 7,240 crore in ACC PLI incentives through 2031 under the revised timeline.
The company aims to expand cell manufacturing capacity to 6 GWh by the end of the current quarter, from 2.5 GWh currently installed.
The revised schedule gives Ola Electric additional time to meet milestones linked to its 20 GWh ACC allocation, with quarterly incentive payouts beginning next quarter
Ola Electric Gets 2 More Years: Bhavish Aggarwal’s Company Can Now Tap Rs 7,240 Crore Battery PLI
Ola Electric’s battery arm gets a two-year extension under the ACC PLI scheme, opening the door to up to Rs 7,240 crore in incentives through 2031 as the company scales domestic cell production
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Ola Electric has secured an extended timeline under the government’s Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme, potentially giving the electric two-wheeler maker access to incentives worth up to Rs 7,240 crore through 2031.
The company disclosed the development in a filing with the BSE on August 12, as reported by Moneycontrol.
Under the revised approval, the Ministry of Heavy Industries has extended the timelines applicable to Ola Cell Technologies (OCT), Ola Electric’s wholly owned battery manufacturing subsidiary. The incentives will now be released on a quarterly basis over five years, beginning next quarter.
PLI Timeline Extended
The revised schedule effectively gives Ola Electric two additional years to meet the cell manufacturing milestones under its 20 GWh allocation through the ACC PLI scheme.
Ola Electric Managing Director Bhavish Aggarwal said the company had stopped factoring the incentives into its financial projections after it failed to meet the original deadlines.
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“We hadn't factored any incentives into our business projections after overshooting the original timelines,” Aggarwal said.
The extended timeline could provide the company with additional financial support as it scales up domestic battery production.
Ola Electric Targets 6 GWh Capacity
Ola Electric currently has 2.5 GWh of installed cell manufacturing capacity, while another 3.5 GWh is under installation. The company expects to reach 6 GWh of capacity by the end of the current quarter, ahead of the revised December 2026 deadline.
The company aims to eventually utilise its entire 20 GWh allocation under the ACC scheme.
Ola Electric is developing batteries using both nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) chemistries. It is also working to increase the localisation of battery materials and cell manufacturing processes.
The company is expected to outline its broader energy business roadmap at its annual Sankalp event. The roadmap will include products such as Shakti and Mahashakti, as Ola Electric looks to expand beyond electric vehicles into a broader energy ecosystem.
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