Reliance Industries has requested an extension from the Indian government to set up its electric vehicle (EV) battery manufacturing plant under the production-linked incentive (PLI) scheme. The company cited delays in the establishment of the facility, which was initially planned to be completed within two years. The extension request comes after the government imposed a penalty due to the delay, with Reliance incurring a fine of ₹31 million as of March 3, 2025.
In March 2022, Reliance secured incentives under the PLI scheme, which aimed to promote local manufacturing of advanced chemistry cells (ACCs) for EVs. The scheme, valued at ₹181 billion ($2.07 billion), requires companies to set up manufacturing plants within a stipulated time frame. However, Reliance’s progress has been slower than expected, prompting the request for additional time to meet the project’s goals.
The penalty imposed by the Ministry of Heavy Industries reflects the pressure on Reliance to meet the project’s deadlines. The fine of ₹31 million was levied as a result of the delay in setting up the plant, which is essential to enhancing local production capacity for EV batteries in India. This project is considered crucial for the country’s EV ambitions and for reducing its dependency on foreign imports for EV components.
Despite the delay, Reliance remains committed to its plans of setting up a robust battery manufacturing infrastructure in India. The company views this initiative as a significant step towards supporting the government’s vision of expanding the EV market and promoting clean energy solutions. The extension request underscores the challenges faced by large conglomerates in establishing such high-tech manufacturing facilities.
Reliance’s EV battery plant is expected to play a key role in India’s transition to sustainable energy and transportation. The company’s investment in local production is seen as a major contribution to the “Make in India” initiative, which encourages domestic manufacturing and innovation. The outcome of the extension request will determine the timeline for meeting the country’s growing EV demand.
