Ola Electric has secured an extended timeline under the government’s Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) Scheme, giving its battery cell manufacturing subsidiary a five-year incentive period until calendar year 2031.
The electric vehicle maker said Ola Cell Technologies Private Limited (OCT), its wholly owned subsidiary, will now be eligible for incentives linked to its 20 GWh cell manufacturing allocation. The revised timeline could help the company unlock cumulative incentives of up to ₹7,240 crore.
Extended PLI support for cell manufacturing
In a regulatory filing with the BSE, Ola Electric said the Ministry of Heavy Industries (MHI) has approved the revised schedule, allowing the company to receive PLI benefits on a quarterly basis from the next quarter.
The company said the approval changes the structure of the incentive programme by providing a full five-year opportunity to claim benefits as it expands its battery cell operations.
Ola Electric Chairman and Managing Director Bhavish Aggarwal said the revised timeline improves the economics of the company’s cell business by replacing the earlier milestone-related uncertainty with a long-term incentive framework.
Aggarwal added that the company had not included PLI incentives in its financial projections after missing the original timelines. He said Ola Electric is now ahead of the revised schedule and expects to begin receiving incentive payments soon.
Battery cell capacity expansion underway
Ola Electric currently has 2.5 GWh of operational cell manufacturing capacity, while another 3.5 GWh is under development. The company expects to reach 6 GWh capacity by the end of the current quarter, ahead of the revised December 2026 milestone.
The company is developing battery cells using both nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) technologies. It is also working on increasing localisation of battery materials, improving manufacturing efficiency and developing recycling capabilities through closed-loop material recovery.
Ola Electric said its multi-chemistry battery platform is supported by domestic research and development efforts aimed at strengthening India’s battery manufacturing ecosystem.
The company will also showcase its future energy product roadmap, including Shakti, Mahashakti and the next stage of its energy platform, during its annual Sankalp event on Independence Day.
The extended PLI support is expected to strengthen Ola Electric’s efforts to scale domestic battery production and reduce dependence on imported cells.
