Reliance Industries Faces Penalty for Delayed Battery Cell Plant Setup

Reliance Industries Ltd faced a penalty for missing a government-imposed deadline to set up a battery cell plant, part of a production-linked incentives program. The delay incurred liquidated damages amounting to Rs 3.1 crore. Despite the financial setback, Reliance remains a key player in advanced energy solutions.

Reliance Industries Ltd has encountered a financial setback as the government imposed a penalty for failing to meet the deadline for its battery cell plant setup. This development comes in the context of a production-linked incentives program aimed at boosting domestic manufacturing.

According to a filing with the stock exchange, the firm's subsidiary, Reliance New Energy Battery Storage Ltd., was informed by the Ministry of Heavy Industries on March 3 about the liquidated damages. The fine, calculated at a rate of 0.1 percent of the performance security per day, totals Rs 3.1 crore as of the mentioned date.

The delay concerns achieving Milestone 1 under an agreement linked to a 5 GWh manufacturing capacity. Despite requesting an extension and refraining from disclosing specific reasons for the delay, Reliance remains strategically positioned in the advanced energy sector, with plans to evolve its Gigafactory production capabilities by 2026.

(With inputs from agencies.)