Ola Electric, the EV manufacturer, has been given updated timelines for its advanced chemistry cell (ACC) production-linked incentive (PLI) scheme by the Ministry of Heavy Industries (MHI), thereby prolonging the initial timelines by two years.

The updated schedule provides Ola Electric a complete five-year PLI period until CY2031 for its 20 GWh allocation and releases up to Rs.7,240 crore in total PLI incentives. Payments will occur every three months, starting in the next quarter, creating an ongoing incentive flow as the company expands its cell-manufacturing operations.

The advancement follows Ola Electric's retraction of a Rs.57-crore provision in the June quarter that was allocated for a possible default under the government's ACC PLI scheme. The company initially set aside the amount after failing to meet the production targets outlined in the scheme, but later retracted the provision as it felt assured of obtaining a waiver from the Ministry of Heavy Industries (MHI).

Also Read: Cybersecurity Threats Organizations Can't Ignore in the Digital Age

Ola Electric now possesses 2.5 GWh of installed capacity for cell manufacturing, with an additional 3.5 GWh being installed. The firm announced it will attain 6 GWh by the conclusion of this quarter, surpassing the initial installed-capacity target significantly before the revised December 2026 deadline set by the government.

Also Read: The Rise of Deep Tech in India: Why India Must Play the Long Game

The advancement follows Ola Electric’s reversal of an Rs.57-crore provision in the June quarter, which had been set aside for a possible penalty under the government’s battery-cell PLI scheme. The turnaround aided in reducing the company's losses during the first quarter of FY27.

Also Read: India's Deep-Tech Revolution: 10 AI Startups Driving Innovation

Bhavish Aggarwal, Chairman and Managing Director, Ola Electric says, “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 Rs.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 Rs.7,240 crore and receive disbursements as soon as next quarter.”