Reliance Industries unit, according to a report by Bloomberg, is under risk of being penalised after failing to set up a battery cell plant that formed part of Prime Minister Narendra Modi’s push to cut import dependence. According to the report that cited people familiar with the matter, Reliance New Energy, among companies that won a bid for battery cell manufacturing in 2022 under a government plan to reward local production, is liable to pay fines of as much as Rs 125 crore ($14.3 million) for missing a deadline.
The report further added that Rajesh Exports, which had also applied under this government initiative to make battery cells, too is under scanner for stalling the advanced-chemistry cell program and could be levied similar sized penalties.
ALSO READAdani Group revives plans for major investments in the US: Report
While the monetary fines are a mere rap on the knuckle, the failure to reach the state-directed manufacturing goals reflects the technological challenges that can hinder PM Modi’s ‘Make in India’ vision to stand against China as the world’s factory. The prime minister has sought to boost manufacturing to 25 per cent of GDP but the share has gone down to 13 per cent in 2023 from 15 per cent in 2014.
While Bloomberg reached out to representatives for Reliance Industries, Rajesh Exports and Heavy Industries Ministry, which oversees this initiative, it didn’t receive any response.
Earlier in 2022, Reliance New Energy, Rajesh Exports and the unit of Ola Electric Mobility Ltd had won bids to build the battery cell plants, under the PLI program. Manufacturers were eligible for Rs 18,100 crore worth of subsidies on meeting milestones for the project. The project sought to create a cumulative 30 gigawatt-hour capacity of advanced chemistry cell battery storage. Per the Bloomberg report, the Ola unit had started trial production in March last year and plans to start commercial production of lithium-ion cells in the April to June quarter. A spokesperson for Ola Electric said in an emailed response to Bloomberg, “We are well on track to meet the set timelines.”
» Read More
