Ola Electric's troubles increased, company could not meet PLI target!
The troubles of electric two-wheeler manufacturing company ola Electric Mobility are not stopping. The company is facing declining two-wheeler sales. So now the company's subsidiary company ola Electric Mobility Cell Technologies has received a letter from IFCI Limited regarding failure to achieve the targets set under PLI ACC ("PLI ACC") in the Production Linked Incentive Scheme for Advanced Chemistry Cell. The company has not been able to meet the production and investment criteria set under the PLI-ACC scheme.
ola Electric told the stock market in the information given under regulatory filing that we have been issued a notice to IFCI Ltd. for not being able to meet the target (Milestone-1) as per Schedule M of the Program Agreement dated July 28, 2022. A letter has been received from. The company is engaged with the concerned authorities in this regard and is in the process of filing an appropriate response.
The company's wholly-owned subsidiary ola Electric Mobility Cell Technologies had entered into an agreement with the Ministry of Heavy industries to avail the scheme. Under the scheme, IFCI Ltd. was appointed as the project management agency for the PLI ACC scheme.
When asked about this, an ola spokesperson said, "We started trial production at our Giga Factory in march 2024 and have successfully received BIS certification for our lithium-ion cells in May 2024. We have already announced the start of commercial production of our cells from the first quarter of FY 2025-26 and we are moving ahead as per plan to complete the work within the stipulated timeline. The spokesperson said that ola Electric will be the first company to commercially manufacture lithium-ion cells in india under the government's PLI ACC scheme.
In the stock market too, ola Electric's stock fell to its lowest level of Rs 53.62 in the session of march 4. The stock has fallen 66 percent from its lifetime high and about 30 percent from the issue price of Rs 76 in the IPO.
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