Ola Electric Eyes Up To ₹7,240 Cr Battery Cell PLI Incentives After Timeline Revision

The Ministry of Heavy Industries has revised the timelines for Ola Electric’s battery subsidiary, Ola Cell Technologies, under the advanced chemistry cell PLI scheme, providing a five-year incentive window through CY2031. The company could potentially claim cumulative incentives of up to ₹7,240 Cr, contingent on meeting the scheme’s conditions.

Ola Electric’s current battery manufacturing capacity stands at 2.5 GWh, with another 3.5 GWh under installation, aiming to reach 6 GWh by the end of September 2026, surpassing the revised December 2026 deadline for the first capacity milestone. Ola Electric founder and CMD Bhavish Aggarwal emphasized that the revised timeline significantly alters the economics of the cell business, converting earlier milestone overhangs into a five-year, quarterly PLI opportunity.

The company recently reversed a ₹57 Cr provision for liquidated damages related to delays and received an unconditional bank guarantee of ₹125 Cr. Despite this, the auditor noted that Ola Electric reversed the provision without receiving official approval, reducing the loss in Q1 FY27.