The government has extended the deadline for Ola Electric and Reliance New Energy’s battery projects to 2031 under the PLI scheme. However, Rajesh Exports has been excluded from this extension due to ongoing investigations by SEBI. Investors should track the slow pace of sector capacity building, as only 1.4 GWh of the awarded 40 GWh is currently operational.
The Ministry of Heavy Industries has granted a significant timeline extension to Ola Electric and Reliance New Energy for their battery manufacturing projects. Under the Production Linked Incentive (PLI) scheme for advanced chemistry cells, these companies now have until 2031 to complete their targets. This revision provides much-needed flexibility for the manufacturers to meet their project commitments.
For Ola Electric, the extension is financially meaningful as it unlocks potential incentives of up to ₹7,240 crore. The government plans to disburse these funds in quarterly cycles, depending on the company's progress and sales. Both companies had previously struggled to meet the initial investment milestones, a challenge common across the industry due to complexities in sourcing specialized machinery and raw materials.
While Ola and Reliance received relief, Rajesh Exports Ltd faces a starkly different outcome. The government has denied an extension to the company and its associated units, effectively excluding them from these benefits. This decision follows an interim order from the Securities and Exchange Board of India (SEBI), which has raised serious concerns regarding the company’s governance, financial reporting, and alleged revenue misrepresentation of approximately ₹15.15 lakh crore. The company is currently under scrutiny by regulatory bodies, including SEBI and the Ministry of Corporate Affairs.
Challenges in Sector Capacity
The broader progress of the battery manufacturing sector remains slow. Although the government awarded 40 GWh of capacity under the scheme, data as of August 2026 shows that only 1.4 GWh is operational. The slow rollout has prompted the government to invite fresh bids for an additional 10 GWh of capacity, aimed at grid-scale stationary storage, with a submission deadline set for October 13, 2026.
For investors, the key monitorable is not just the deadline extension but the actual pace of execution. While the extension protects companies from immediate penalties, the long-term benefit for Ola and Reliance depends on their ability to scale up manufacturing facilities and utilize the new timelines effectively. Conversely, the regulatory cloud over Rajesh Exports remains a critical risk factor that continues to weigh on the stock's stability and market confidence.