EV-maker Ola Electric has received revised timelines for its advanced chemistry cell (ACC) production-linked incentive (PLI) scheme from the Ministry of Heavy Industries (MHI), effectively extending the original timelines by two years.
The revised timeline gives Ola Electric a full five-year PLI window through CY2031 for its 20 GWh allocation and unlocks up to ₹7,240 crore in cumulative PLI incentives. Disbursements will be made quarterly, beginning next quarter, providing a recurring incentive stream as the company scales its cell-manufacturing business.
The development comes after Ola Electric reversed a ₹57-crore provision in the June quarter that had been made towards a potential default under the government’s ACC PLI scheme. The company had originally provided for the amount after missing the scheme’s prescribed production milestones, but reversed the provision as it was confident of receiving a waiver from the Ministry of Heavy Industries (MHI).
Ola Electric currently has 2.5 GWh of installed cell-manufacturing capacity, with a further 3.5 GWh under installation. The company said it will reach 6 GWh by the end of the current quarter, achieving the initial installed-capacity milestone well ahead of the government’s revised December 2026 deadline.
The development comes after Ola Electric reversed a ₹57-crore provision in the June quarter that had been earmarked for a potential penalty under the government’s battery-cell PLI scheme. The reversal helped narrow the company’s losses in the first quarter of FY27.
Bhavish Aggarwal, Chairman and Managing Director, Ola Electric, said: “The revised timeline is more than an extension. It transforms the economics of our cell business by converting an earlier milestone overhang into a five-year, quarterly PLI opportunity of up to ₹7,240 crore.
“We hadn’t factored any incentives into our business projections after overshooting the original timelines. Ola is now well ahead of the government’s revised schedule, which enables us to access the full potential of ₹7,240 crore and receive disbursements as soon as next quarter.”
Published on August 12, 2026
