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

India's Ministry of Heavy Industries (MHI) has revised the timelines for the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme for Ola Electric's battery subsidiary, Ola Cell Technologies Pvt Ltd (OCT). The revised schedule grants the company a five-year incentive window through 2031 for its allocated 20 GWh capacity, potentially enabling it to claim cumulative incentives up to ₹7,240 crore (approximately $870 million), Ola Electric stated in an exchange filing.

The actual payouts are contingent upon the company meeting the scheme's stipulated conditions. Ola Electric indicated that these incentives would be disbursed quarterly over the next five years, commencing from the December quarter of 2026. This governmental decision effectively extends the company's original deadlines by two years.

Ola Electric currently possesses 2.5 GWh of installed cell manufacturing capacity, with an additional 3.5 GWh undergoing installation. The company anticipates reaching 6 GWh capacity by the end of the September quarter, ahead of the revised December 2026 deadline for the initial capacity milestone. Company founder Bhavish Aggarwal stated that the timeline revision transforms the economics of its cell business.

The revised timelines gain significance as Ola Electric recently reversed a ₹57 crore (approx. $6.8 million) provision for liquidated damages related to delays in meeting investment milestones under the ACC PLI scheme in Q1 FY27. This reversal of the provision helped reduce the company's net loss in the June quarter.

Ola Electric reported a 22% decrease in its consolidated net loss to ₹3,360 crore (approx. $40 million) in Q1 FY27 from ₹4,280 crore in the prior year. Operating revenue fell 45% year-on-year to ₹4,550 crore. The company is also preparing to launch a new generation of its residential battery energy storage system (BESS) and its utility-scale BESS platform on August 15.