Ola Electric receives letter from IFCI for missing out on PLI milestones

Ola Electric Mobility on Tuesday said its wholly-owned subsidiary has received a letter from IFCI for missing out on targets specified under the Production Linked Incentive Advanced Chemistry Cell scheme (PLI ACC).

As per the government sources, the company did not meet production and investment-related criteria specified under in PLI ACC scheme.

"We would like to inform you that we are in receipt of a letter from IFCI Ltd for non-achievement of Milestone -1 as per schedule M of the Programme Agreement dated July 28, 2022," Ola Electric said in a regulatory filing.

The company is actively engaged with the relevant authorities in this regard and is in the process of filing an appropriate response, it added.

Ola Electric Mobility Cell Technologies, a wholly-owned subsidiary of the company, had entered into a programme agreement with the Ministry of Heavy Industries for availing the scheme.

Pursuant to the scheme, IFCI Ltd was appointed as the project management agency for the PLI ACC scheme.

When contacted, an Ola spokesperson said: "We commenced trial production at our Gigafactory in March 2024 and successfully received the BIS certification for our lithium-ion cells in May 2024.

We have already announced the commercial production of our cells beginning Q1 FY26, and we are well on track to meet the set timelines." Ola Electric will be the first to commercially manufacture lithium-ion cells in India under the government's ACC PLI scheme, the spokesperson added.