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Indian electrical two-wheeler maker Ola Electrical acquired a letter from the federal authorities on Tuesday for lacking a key milestone within the setup of its deliberate battery “gigafactory”.
Ola was chosen in 2022 for the authorities’s production-linked incentive (PLI) scheme to determine a 20 gigawatts (GW) native battery manufacturing facility within the southern state of Tamil Nadu.
The 181-billion-rupee ($2.07 billion or roughly Rs. 18,019 crore) scheme required corporations to arrange manufacturing services inside two years. Ola Electrical has beforehand mentioned it might start business operations on the manufacturing facility by April.
Its Tuesday assertion mentioned the corporate was actively engaged with related authorities, however didn’t supply particulars in regards to the missed milestone or spell out what steps the authorities might take subsequent.
Ola Electrical has misplaced roughly 40 % of its market worth since going public final 12 months, pressured by excessive prices, weak demand and deep reductions which have led to job cuts in its push for profitability.
Earlier within the day, Mukesh Ambani-led Reliance New Power Photo voltaic Restricted additionally acquired the same letter from the federal authorities for lacking its timeline to arrange a producing plant below the identical scheme.
Reliance mentioned its penalties stood at 31 million rupees ($355,293 or roughly Rs. 3.09 crore) as of March 3, and that it had requested the authorities for extra time to arrange its manufacturing plant.
It was not instantly clear how a lot Ola’s potential penalties can be.
© Thomson Reuters 2025
(This story has not been edited by NDTV employees and is auto-generated from a syndicated feed.)
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