Ola Electric has received a critical letter from IFCI Limited regarding a missed milestone in the Production Linked Incentive (PLI) Advanced Chemistry Cell (ACC) scheme, potentially signaling challenges in the company's strategic battery manufacturing plans.
- Ola entered into an agreement with MHI for battery manufacturing
- Exact details of the milestone remain unclear
In a stock exchange filing, Ola Electric revealed that its wholly-owned subsidiary, Ola Cell Technologies Private Limited, has been flagged for non-achievement of Milestone-1 as outlined in the original Programme Agreement dated July 28, 2022.
The disclosure comes after the subsidiary entered into an agreement with the Ministry of Heavy Industries to participate in the PLI ACC scheme, with IFCI Limited appointed as the Project Management Agency.
While the specific details of the unmet milestone remain undisclosed, Ola Electric has stated that it is "actively engaged with the relevant authorities" and is preparing to file an appropriate response to the notice.
This development could have potential implications for the company's ambitious electric vehicle battery manufacturing strategy, which has been a key focus of its expansion plans in the rapidly evolving Indian electric mobility sector.
Investors and industry observers will likely be closely monitoring the company's next steps and the potential impact on its production and expansion timelines.
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