Ola Electric has announced that the Ministry of Heavy Industries (MHI) has approved a revised schedule that will allow the company to receive Production Linked Incentive (PLI) benefits quarterly, starting from the next quarter.
Ola Electric secured revised timelines for its wholly-owned subsidiary, Ola Cell Technologies Private Limited (OCT), under the Advanced Chemistry Cell (ACC) PLI Scheme. This guarantees a full five-year period of incentive receipt until the calendar year 2031 and opens access to cumulative incentives worth up to 7,240 crore rupees, the company stated on Wednesday.
In a filing with BSE, Ola Electric clarified that MHI approved an amended schedule allowing for quarterly PLI incentives starting next quarter. The company emphasized that this change from MHI goes beyond a mere extension of deadlines, as it locks in the five-year PLI period until 2031 for the 20 GWh allocated to Ola Electric and unlocks up to 7,240 crore rupees in cumulative incentives. Payments will be made quarterly, beginning next quarter, creating a steady stream of incentives as the battery manufacturing business scales.
Bhavish Aggarwal, Chairman and Managing Director of Ola Electric, noted that the revised schedule 'transforms the economics of our cell manufacturing business, turning a previously existing challenge of missing milestones into a five-year, quarterly opportunity to receive PLI.' He added that the company had not initially factored in any incentives in its business forecasts after exceeding the original deadlines. Aggarwal also stated that Ola is now ahead of the government's revised schedule and can receive the full potential of 7,240 crore rupees, while also starting payments as early as next quarter.
Cell Manufacturing Capacity
Ola Electric currently has an installed cell manufacturing capacity of 2.5 GWh, with another 3.5 GWh under installation. The company reported that it will reach 6 GWh by the end of the current quarter, thereby achieving the initial installed capacity target significantly earlier than the revised deadline of December 2026. Ola Electric added that the government's decision effectively extended the original deadlines by two years.
The company is developing cells using Nickel-Manganese-Cobalt (NMC) and Lithium-Iron-Phosphate (LFP) chemical compositions, while simultaneously working on localizing battery materials and cell manufacturing processes. Ola Electric is building a multi-chemistry platform for cells, supported by in-house R&D, enhanced battery material localization, improved production yield, and a closed-loop material recovery cycle. Furthermore, the EV manufacturer announced its broader energy product roadmap, including Shakti, Mahashakti, and the next phase of its energy platform, at the Sankalp event on Independence Day.
