Reliance Industries' electric vehicle (EV) battery manufacturing unit has sought an extension from the Indian government to set up its production facility under the Production-Linked Incentive (PLI) scheme. The company, led by Mukesh Ambani, made the request on Tuesday but did not disclose the duration of the extension or the reason for the delay.
Reliance had secured incentives in March 2022 under the PLI scheme to establish a 5-gigawatt (GW) manufacturing capacity for advanced chemistry cells (ACCs). As per the scheme’s guidelines, companies were required to set up production facilities within two years. In its statement, Reliance also confirmed receiving a letter from the Ministry of Heavy Industries regarding a penalty due to the delay. The penalty stood at ₹31 million ($355,293) as of March 3.
The Indian government introduced the PLI scheme to strengthen domestic battery production and support its goal of increasing EV sales to 30% of total car sales. Currently, electric vehicles account for only about 2% of car sales in the country.
Reliance’s participation in EV battery manufacturing is part of India's larger effort to reduce dependence on imports and promote clean energy. However, the delay highlights the challenges of scaling up local battery production within the required timeframe. The government's response to the extension request is awaited.
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