India extends PLI battery deadline for Ola and Reliance to 2031, but excludes Rajesh Exports amid Sebi probe. Only 1.4GWh of 40GWh capacity operational.
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The government extended the deadline for two of three companies awarded contracts under the ₹18,100-crore production-linked incentive scheme for advanced chemistry cells (PLI ACC). Ola Electric and Reliance New Energy, a subsidiary of Reliance Industries, received a timeline extension to 2031. Rajesh Exports, the third beneficiary, was not given one. The reason: a Sebi investigation into governance issues at the company.
Two government officials familiar with the development confirmed the decision. The ministry of heavy industries (MHI) said in an emailed response to Mint that Ola Electric got the extension for its committed 20GWh capacity, and Reliance New Energy for the 5GWh it won in the first round of bidding. Reliance had won another 10GWh in later rounds with a separate gestation period through July 2027 and incentives until 2032 – that portion did not receive any extension.
All three companies missed their initial target of investing ₹225 crore per gigawatt hour (GWh) in the first two years. So far, only 1.4GWh of capacity, from Ola Electric, is operational out of the 40GWh awarded under the scheme. Ola Electric’s balance sheet estimated penalty provisions under the scheme at ₹57 crore at the end of March 2026. The government has not disbursed any funds under the PLI ACC yet.
The MHI expects beneficiaries to have 11GWh installed by December 2026, with Ola Electric raising its capacity from 1.4GWh to 6GWh and Reliance New Energy setting up 5GWh. In March, the MHI told a parliamentary committee that cell makers missed targets because of challenges in obtaining skilled manpower, specialised machinery, and raw materials.
For Rajesh Exports, the hold on the extension comes after Sebi, in a June 2026 interim order, alleged misrepresentation worth ₹15 trillion by the company. The regulator raised concerns about transactions involving three Rajesh Exports entities: the parent, ACC Energy Storage Private Ltd, and Elest Private Ltd. ACC Energy is the subsidiary that qualified under the PLI scheme. Elest is a privately held firm of Rajesh Exports’ owner Rajesh Mehta that owns the land and technology for the battery business.
The MHI has sent a show-cause notice to ACC Energy, which was awarded a contract to build 5GW of battery capacity. “A show cause has been issued to ACC Energy. Until a satisfactory response from the company is received, their request has been kept on hold,” a government official said, requesting anonymity.
Rajesh Mehta told Mint in June: “If they give us, we’ll take it. If they don’t give, we are least bothered. By taking away the PLI, will they take away my invention?”
Abhishek Saxena, a former public policy expert at Niti Aayog, said the government holds discretionary powers to include or exclude firms from incentives based on available evidence. Reji Kumar Pillai, president of the India Smart Grid Forum, a power ministry-backed think tank, said the administration of the PLI ACC scheme should be a lesson for the 10GWh grid-scale storage tender floated on 15 July. “Meeting deadlines of an incentive scheme is crucial,” Pillai said. “India presently does not produce localized battery-grade materials yet, which will be essential to build a domestic cell making ecosystem.”
The extension is significant because each company was liable to pay penalties for missed timelines. Ola Electric’s provision of ₹57 crore suggests the company accounted for the risk. For Rajesh Exports, the exclusion adds to the uncertainty around its governance and its ability to participate in a scheme meant to build India’s battery manufacturing base. The MHI floated a 10GWh grid-scale storage tender under the same PLI ACC scheme on 15 July.
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