Ola Electric Secures Two-Year Extension Under Cell PLI Scheme, ₹7,240 Crore in Incentives Through 2031.

Electric vehicle 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), extending the original deadlines by two years.

The revised schedule gives Ola Electric a five-year PLI window through calendar year 2031 for its 20 GWh allocation, potentially unlocking cumulative incentives of up to ₹7,240 crore. The incentives will be disbursed quarterly, beginning next quarter, providing the company with a recurring incentive stream as it scales up its cell-manufacturing operations.

The development follows Ola Electric’s reversal of a ₹57-crore provision in the June quarter that had been made for a potential default under the government’s ACC PLI scheme. The company had initially provided for the amount after missing prescribed production milestones but subsequently reversed it, citing confidence that the Ministry of Heavy Industries would grant a waiver.

Ola Electric currently has 2.5 GWh of installed cell-manufacturing capacity, with another 3.5 GWh under installation. The company expects to reach 6 GWh of capacity by the end of the current quarter, ahead of the government’s revised December 2026 deadline for the initial installed-capacity milestone.

The provision reversal helped narrow Ola Electric’s losses in the first quarter of FY27.

Bhavish Aggarwal, Chairman and Managing Director of Ola Electric, said the revised timeline would significantly improve the economics of the company’s cell business by replacing the earlier milestone-related uncertainty with a five-year PLI opportunity.

“We hadn't factored any incentives into our business projections after overshooting the original timelines,” Aggarwal said, adding that Ola Electric is now ahead of the government’s revised schedule and can access the full potential of the ₹7,240-crore incentive, with disbursements expected to begin as early as next quarter.