Now Reading: Ola Electric gets two-year PLI extension, Rs 7,240 crore
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Ola Electric gets two-year PLI extension, Rs 7,240 crore
The Ministry of Heavy Industries has revised Ola Electric's ACC PLI scheme timelines, effectively granting a two-year extension. The revision unlocks up to Rs 7,240 crore in incentives over a five-year window…
The Story in Brief
The Ministry of Heavy Industries has revised Ola Electric's ACC PLI scheme timelines, effectively granting a two-year extension. The revision unlocks up to Rs 7,240 crore in incentives over a five-year window through 2031, with quarterly disbursements starting next quarter.
Ola Electric currently has 2.5 GWh of installed cell capacity, with 3.5 GWh under installation, and expects to reach 6 GWh by the end of this quarter. The company reversed a Rs 57-crore provision it had made for a potential penalty after securing the timeline waiver. Bhavish Aggarwal said the change transforms the economics of its cell business.
The Indian Opinion
The extension for Ola should not be seen as a special bailout. Many companies have sought timeline revisions under the PLI scheme amid supply chain and technology challenges. The key test will be whether Ola meets the 6 GWh capacity milestone by end of this quarter and receives the first quarterly incentive. If it does, the scheme is working as intended. If not, criticisms of lax enforcement will gain ground.
Sources (3): thehindubusinessline.com, auto.economictimes.indiatimes.com, thehindu.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
