Battery PLI Beneficiaries Seek Penalty Relief as Heavy Industries Ministry Reviews Requests; Minister Kumaraswamy May Grant Waivers and Extensions
The three major beneficiaries of the Government of India’s ₹8,100 crore Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme—Ola Electric, Reliance Industries, and Rajesh Exports—have formally approached the Ministry of Heavy Industries, seeking relief from penalties after failing to meet stipulated project milestones.
Deadline Missed, Penalties Loom
As part of the ACC PLI scheme launched in 2021 to boost domestic battery manufacturing capabilities, selected companies were expected to adhere to strict deadlines. One of the key milestones was to be achieved by December 2024, which none of the three companies managed to meet.
Government officials have confirmed that notices were sent in March 2025, with follow-up reminders issued in May, warning of penalties proportionate to each firm’s investment commitment and expected incentive accruals.
- Ola Electric could face penalties amounting to ₹1 lakh per day starting January 1, 2025, until its commitments are met.
- Reliance New Energy Limited (RNEL) and ACC Energy Storage (a Rajesh Exports entity) may be penalized ₹5 lakh per day under similar conditions.
Companies Request Extensions & Waiver
All three beneficiaries have reportedly requested an extension of their implementation timelines and a waiver of the penalty clauses. The final decision now rests with Union Minister H.D. Kumaraswamy, who is expected to review the matter shortly.
Rajesh Exports Cites Force Majeure
Rajesh Mehta, Executive Chairman of Rajesh Exports, stated in a conversation with The Economic Times that their delay was due to force majeure circumstances. He explained that although land was allotted to them by the Karnataka government towards the end of 2023, construction faced immediate resistance from local farmers.
“We began project implementation as soon as the land was allotted. Our internal schedule had us commencing commercial production by October 2024—well ahead of the December deadline. Unfortunately, we encountered a local farmers’ agitation that delayed peaceful possession by 19 months. The issue was finally resolved with state government intervention,” Mehta said.Queries to Ola Electric and Reliance Industries remained unanswered at the time of publication.
