Ola Electric Mobility’s battery unit, Ola Cell Technologies have received a letter from IFCI regarding its failure to meet targets specified under the Production Linked Incentive Advanced Chemistry Cell (PLI ACC) scheme. IFCI is a project management agency for some of the PLI schemes.
The agency has flagged non-achievement of the first milestone under the scheme, Bhavish Aggarwal-led Ola Electric Mobility said in a stock exchange filing on Tuesday. The new-age EV company said it is engaging with relevant authorities regarding the same. Currently, it is in the process of filing an appropriate response.
The Economic Times had reported that companies such as Ola Electric unit, Reliance New Energy Battery Storage and Rajesh Exports will have to pay a penalty for missing the targets under the battery PLI scheme.
For instance, Ola Electric, which received approval for a 20-gigawatt-hour capacity under the scheme, will have to pay Rs 12.5 lakh per day from January 1, 2025, until it fulfils its commitments. The company has not disclosed the reasons behind missing the target. However, non-compliance could affect its eligibility for incentives under the scheme.
The company started trial production at its Gigafactory in March 2024. Following this, it received the BIS certification for the lithium-ion cells in May 2024. Ola’s spokesperson as quoted by ET stated that the company will be the first to commercially manufacture lithium-ion cells in India under the ACC PLI scheme.
What Is ACC PLI Scheme?
The National Programme on Advanced Chemistry Cell Battery Storage PLI scheme was launched in May 2021 to bolster domestic manufacturing of advanced battery technologies. The government has allocated Rs 18,100 crore under the scheme to establish a robust electric mobility and battery storage ecosystem in India.
According to the ACC PLI scheme, companies must establish giga-scale battery manufacturing facilities while initially ensuring at least 25% domestic value addition, gradually increasing to 60% within five years. Beneficiary firms must invest Rs 225 crore per GWh within two years.
The scheme allows a two-year setup period from January 2023 to December 2024, followed by a five-year performance phase, concluding in December 2029.
