Reliance Industries’ share price declined 3.6% to an intra-day low of Rs 1,156 on the National Stock Exchange after a unit of it is expected to be slapped with a fine of Rs 125 crore.
A subsidiary of Reliance Industries faces the possibility of penalties for not establishing a battery cell factory that was integral to Prime Minister Narendra Modi’s initiative to reduce reliance on imports, according to a report by Bloomberg.
Reliance New Energy was one of the companies awarded a contract for battery cell production in 2022 as part of a government initiative to encourage domestic manufacturing. It is expected that the company may miss the deadline, ending up paying fines of as much as Rs 125 crore ($14.3 million).
ALSO READReliance Industries unit risks being fined up to Rs 125 crore; Know why
Apart from that, Rajesh Exports too is also under the scanner for the same. It applied under the government initiative to make battery cells.
Reliance Industries has been on a losing spree and this report comes as a rap on the knuckles. The stock was among the major losers in the Nifty 50. It contributed the most after Coal India to the fall of Nifty 50.
Reliance Industries’ stock performance
The share price of Reliance Industries has fallen more than 4% in the past five trading sessions. The scrip has wiped out 6.5% in the previous one month and almost 23% in the past six months. It has declined almost 23% in the last one year.
To compare, the benchmark index, Nifty 50 has fallen 1.8% in the last five trading sessions. The index has fallen 5.23% in the last one month and 12.43% in the previous six months. It has erased all gains of the last one year.
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