India has pushed back deadline for two companies in its ₹18,100-crore battery production incentive scheme. Ola Electric and Reliance New Energy now have until 2031 to meet their goals. Rajesh Exports Ltd isn't so lucky,left out as Sebi digs into governance issues.
Contracts were handed out in 2022 to boost battery capacity for cars and industry. Each company had to invest ₹225 crore per gigawatt hour (GWh) in the first two years. Only Ola Electric has some capacity online—1.4GWh of 40GWh promised. The Ministry of Heavy Industries (MHI) says extensions go to Ola Electric for 20GWh,Reliance for 5GWh.
Reliance also grabbed another 10GWh later,aiming for a July 2027 deadline, with incentives until 2032. By December 2026,MHI expects total capacity to hit 11GWh,with Ola at 6GWh and Reliance at 5GWh.
Hurdles like finding skilled workers,special equipment,and materials have stalled progress. MHI told Rajya Sabha’s Industry Committee in March these issues are slowing cell makers .
Ola Electric revealed the extension to stock exchanges on August 12 . It's a relief, given the penalties for missing deadlines. Ola expects a ₹57 crore penalty by March 2026 if targets aren't met.
Meanwhile, Rajesh Exports faces a tough spot . Sebi is probing alleged misrepresentation involving ₹15 trillion and transactions linked to subsidiaries like ACC Energy Storage Private Ltd and Elest Private Ltd. ACC Energy got into the PLI scheme but now faces compliance questions from MHI.
Rajesh Mehta,chair of Rajesh Exports,expressed his annoyance,saying lack of PLI support won't hurt them. "If they give us,we’ll take it. If they don’t give,we are least bothered," he said .
No responses yet from Rajesh Exports,Reliance,or Ola Electric on the current situation.
Experts say handling of the PLI ACC scheme should guide future efforts, like the 10GWh grid-scale storage tender from July 15. Reji Kumar Pillai, India Smart Grid Forum president,stressed sticking to deadlines in such schemes. Lessons from this PLI scheme's missteps should shape future tender rules .
Pillai noted India lacks capacity for battery-grade materials,vital for domestic cell production. The government's PLI strategy will be scrutinized as it tackles these complex battery production challenges .
