Ola Electric Electric on Wednesday said the Ministry of Heavy Industries has approved revised timelines under the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme for its wholly owned subsidiary, Ola Cell Technologies.
The revised approval secures a full five-year PLI window through calendar year 2031 for Ola Electric’s 20 GWh ACC allocation and could unlock cumulative incentives of up to ₹7,240 crore.
The incentives will be disbursed quarterly, beginning next quarter, creating a recurring incentive stream as the company scales up its cell manufacturing operations, Ola Electric said in an exchange filing.
Ola Electric currently has 2.5 GWh of installed cell manufacturing capacity. The company expects to reach 6 GWh of installed capacity by the end of the current quarter, achieving the initial installed-capacity milestone ahead of the revised December 2026 timeline.
“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 ₹7,240 crore,” Ola Electric Chairman and Managing Director Bhavish Aggarwal said.
Aggarwal added that Ola Electric had not factored any PLI incentives into its business projections after missing the original timelines. “We hadn’t factored any incentives into our business projections after overshooting the original timelines. Ola is now well ahead of the government’s revised schedule, and enables us to access the full potential of ₹7,240 crore and receive disbursement as soon as next quarter,” Aggarwal said.
The revised timeline comes at a crucial juncture for Ola Electric as it scales up in-house cell manufacturing and seeks to reduce its dependence on imported cells and battery components.
The development also comes after Ola’s auditor flaggig the company’s decision to reverse a ₹57 crore provision for liquidated damages related to missed investment milestones under the ACC PLI scheme. In the first quarter earnings, the auditors noted that the provision had been reversed without formal approval from MHI for a waiver of the penalty.
Ola Cell Technologies had provided ₹57 crore for liquidated damages after failing to meet an investment milestone under the scheme. The reversal reduced the company’s June-quarter expenses and contributed to narrowing its consolidated net loss to ₹336 crore from ₹428 crore a year earlier.
Ola Cell Technologies was awarded 20 GWh of domestic ACC manufacturing capacity under the government’s PLI scheme in 2022. The scheme has a total outlay of ₹18,100 crore to establish 50 GWh of domestic ACC manufacturing capacity, with beneficiaries required to invest ₹225 crore per GWh within two years.
Ola Electric is currently developing a multi-chemistry cell platform covering nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) technologies, which are used to power its electric two-wheelers as well as battery energy storage products. The company is also set to unveil its broader energy product roadmap at its annual Sankalp event on Independence Day. The roadmap will include its home energy storage brand, Ola Shakti and commercial storage brand, Mahashakti.