Ola Electric gets five-year PLI window, eyes Rs 7,240 Cr incentive

Ola Electric has secured a revised timeline under the government’s Production Linked Incentive (PLI) scheme for advanced chemistry cells (ACC), giving its battery business a fresh five-year window to qualify for incentives of up to Rs 7,240 crore. The Ministry of Heavy Industries (MHI) has revised the timelines for Ola Cell Technologies (OCT), the wholly owned subsidiary of Ola Electric that is developing the company’s battery cell manufacturing business. Under the revised timeline, Ola Electric will have until December 2026 to meet its first installed-capacity milestone of 6 GWh. The company said it expects to reach the milestone by the end of the current quarter, ahead of the revised deadline. Ola currently has 2.5 GWh of installed cell manufacturing capacity, while another 3.5 GWh is under installation. The company has a larger allocation of 20 GWh under the ACC PLI scheme. The revised approval also means Ola Electric can access the PLI incentives over the next five years through calendar year 2031. The company said the incentives will be disbursed quarterly, starting from the next quarter. Ola Electric founder and CEO Bhavish Aggarwal said the revised timeline will improve the economics of its cell business. He added that the company had not factored PLI incentives into its business projections after it missed the original timelines. The company is now targeting a scale-up towards its 20 GWh allocation as it builds its battery cell business. It is developing cells based…