Ola Electric Faces PLI ACC Scheme Hurdles: A Temporary Setback?

Ola Electric Mobility, a leading electric vehicle company, has received a notice for missing targets under the Production Linked Incentive Advanced Chemistry Cell scheme. The company is addressing the issue through discussions with relevant authorities and remains confident about meeting future production timelines at its Gigafactory.

Ola Electric Mobility, a prominent player in the electric vehicle industry, is facing challenges after its subsidiary failed to meet the targets specified in the Production Linked Incentive Advanced Chemistry Cell scheme. The notice was issued by IFCI, the designated project management agency.

Government sources confirmed that Ola did not fulfill the production and investment criteria outlined in the PLI ACC scheme. In response, Ola Electric acknowledged receiving a letter concerning the non-achievement of Milestone-1 and is actively engaging with authorities to file a suitable response.

The company remains optimistic, having started trial production at its Gigafactory and obtaining the necessary BIS certification for its lithium-ion cells. Ola Electric asserts it is on track to commence commercial production by Q1 FY26, setting a precedent as the first to manufacture lithium-ion cells in India under this government initiative.

(With inputs from agencies.)