Reliance Industries shares declined for the second straight session amid delays in battery production under India’s PLI scheme, with concerns over missed deadlines and potential penalties, as per Economic Times news reports.
A unit of Reliance Industries Ltd., led by billionaire Mukesh Ambani, is under scrutiny for failing to establish a battery cell manufacturing facility under the Indian government’s initiative to boost domestic production.
Reliance New Energy Ltd., alongside Rajesh Exports, risks financial penalties for missing key project milestones aimed at reducing import dependence for advanced chemistry cell batteries, as per Economic Times news report.
Reliance New Energy and Rajesh Exports were awarded contracts in 2022 as part of India’s Production-Linked Incentive (PLI) program, which supports domestic battery manufacturing. Under this scheme, companies were expected to achieve a minimum committed production capacity and local value addition of 25% within 2 years, increasing to 50% within 5 years.
However, both companies have failed to meet their respective deadlines and could face fines up to ₹1.25 billion ($14.3 million) for the delays. The penalties are relatively minor for Reliance, but the inability to meet production targets raises questions about India’s ambitious plan to rival China in battery production and EV technology.
The PLI scheme has seen mixed results across industries. While it has successfully boosted local smartphone assembly, the battery production sector has struggled due to high investment costs and technological challenges. These issues have slowed progress, impacting India’s efforts to develop domestic battery manufacturing capabilities.
On the other hand, Ola Cell Technologies, a subsidiary of Ola Electric, has made significant strides under the program. The company began trial production in March 2024 and expects to commence commercial lithium-ion cell production between April and June 2025. Ola Electric confirmed in a statement that they are on track to meet the government’s set targets.
Reliance Industries Limited’s share price declined 3.12% to ₹1,162.65 on March 3, 2025, marking its second consecutive session of losses. The stock opened at ₹1,204.00 and hit an intraday high of ₹1,206.45 before dropping to a low of ₹1,161.15.
Reliance New Energy’s failure to meet PLI deadlines signals the difficulties in scaling up battery cell production despite government incentives. While Ola Electric has made progress, broader industry challenges, including high costs and shifting global market conditions, continue to affect India’s ambitious plans for self-reliant battery manufacturing.
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Published on: Mar 3, 2025, 10:17 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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