Battery PLI beneficiaries seek relief on penalties
The three beneficiaries selected for the Advanced Chemistry Cell (ACC) manufacturing program have sought relaxations from the Centre after not meeting the specific scheme deadlines. Slippages make the companies liable to penalties. The three beneficiaries of the ACC Production Linked Incentive (PLI) scheme are
Ola Electric
,
Rajesh Exports
and
Reliance Industries
.
The Ministry of Heavy Industries is said to have received requests from all three participants. Minister H D Kumaraswamy will now take a call on waiving the penalty and allowing extension to the earlier deadlines. The National Programme on Advanced Chemistry Cell Battery Storage was launched with a ₹18,100 crore outlay in 2021.
An official said the beneficiaries did not meet the December 2024 milestone. Notices were sent to companies in March 2025. Fresh notices were sent in May as well. According to officials aware of the matter, these penalties are in proportion to investment commitment and expected incentives to be accrued by company.
If penalties are levied, Ola Electric would have to pay ₹12.5 lakh per day from January 1, 2025, until the commitments made by the company under the scheme are met. Reliance Industries-owned RNEL and ACC Energy Storage - which bid as
Rajesh Exports
- would have to pay ₹5 lakh per day.
Speaking to ET, Rajesh Mehta, the executive chairman of Rajesh Exports said his company has sought because of force majeure. Queries to Reliance and Ola remained unanswered until press time.
Mehta said Rajesh Exports was allotted land by Karnataka toward 2023-end and project implementation started immediately. "As per our own schedule, we were to initiate commercial production by October 2024, before December 2024 deadline. We faced a local farmers' agitation as soon as work started," he said, adding that peaceful possession of the land was received after 19 months with state government's intervention.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
India explores MSP reset to boost pulse output
The Centre is exploring a plan to review the formula it uses to calculate the minimum support price (MSP) for key pulses such as tur (arhar), urad (black gram), chana (gram), and masur (lentil), four people familiar with the matter told Mint on condition of anonymity. This comes amid rising concerns over stagnant production, growing imports, and skewed price incentives that fail to reflect current demand trends. As per the proposed plan, which is in discussion, the government is exploring whether the current cost-based pricing mechanism adequately reflects the ground realities faced by farmers. The MSP has to be aligned with demand, consumption, and production patterns to incentivize farmers and encourage crop diversification, they said. The move comes amid concerns that floor prices that are of same level as input costs or even lower are discouraging farmers from planting more pulses, despite India's high import dependence. Read more: Centre plans to leverage high productivity in northeastern states to boost output of pulses, ease food inflation "The ministries consumer affairs, agriculture, and cooperation will hold discussions to draft a plan for increasing the domestic production of key pulses, particularly the costlier tur," said the first person cited above. There has been a sharp spike in imports of tur from African nations and Myanmar, contributing to a rising import bill. Queries sent to the ministries of consumer affairs, agriculture, and finance remained unanswered at press time. Mission for Aatmanirbharta in pulses This review is part of a six-year Mission for Aatmanirbharta (self-reliance) in pulses, which aims to make India self-sufficient in pulse production within a decade. While the MSP for tur for the 2025-26 crop year is set at ₹8,000 per quintal, moong fetches a higher ₹8,868 per quintal, despite lower demand. "Moong is a 60-70-day crop and is cultivated three times a year, while tur is a 120–160-day crop. Given the price sensitivity of tur, there is a need for a targeted approach to increase its production," said the second person. Moong (green gram) is cultivated over three main seasons—kharif (June-August), rabi (October-December) and the summer season (March-May) after the harvest of rabi crops. In contrast, tur (pigeon pea) is primarily a kharif crop, sown with the arrival of the monsoon between June and July and harvested between November and January. It is typically cultivated only once a year. Alongside price revision, the Centre is also planning to provide better quality seeds to improve yield and bridge the demand-supply gap. A stakeholder consultation with relevant ministries is expected later this month to outline a strategy. The government is also exploring region-specific procurement strategies to stabilize prices in pulse-growing zones and reduce supply chain inefficiencies, according to one of the four people. Tur is widely consumed in states such as Maharashtra, Karnataka, Uttar Pradesh, Madhya Pradesh, and Gujarat, while moong has niche consumption in Rajasthan and southern states. Tur production has stagnated, dropping from 4.3 million tonnes in FY21 to 3.5mt in FY25, with yields falling from 914 kg per hectare to 823 kg/ha over the same period. In contrast, moong production has risen from 3mt in FY21 to 3.8 mt in FY25, and yield has improved from 601 kg/ha to 685 kg/ha. Tur consumption, however, remains higher than moong. According to government estimates, tur consumption stood at 4.6mt in FY23, compared with 3.5mt for moong. Retail data from 9 June shows tur is priced at ₹124.08 per kg, while moong is cheaper at ₹111.41 per kg. The MSP for masur is ₹6,600 per quintal and for chana is ₹5,650 per quintal. In her FY2025-26 budget speech, finance minister Nirmala Sitharaman had announced the Mission for Aatmanirbharta in pulses, allocating ₹1,000 crore to boost domestic production, with a focus on tur, urad and masur. The mission promises assured MSP-based procurement and post-harvest warehousing. The area sowed for pulses grew marginally to 27.62 million hectares in FY25, with tur cultivation at 4.33 million hectares compared with 4.13 million hectares the previous year. India's overall pulse production dipped to 24mt in FY24 from 26mt in FY23 due to poor weather but is expected to recover to 25mt in FY25. "The proposed strategy to significantly increase the production of pulses over the next five years will be part of the Mission for Aatmanirbharta in pulses," said a third person. Read more: In charts: Why a good pulses output is an urgent need this year Under the plan, the government aims to increase the sowing area of tur by expanding cultivation to fallow land as well as watershed areas. The Centre has also identified two million hectares of fertile land across the country for this purpose, as it was first reported by Mint on 3 December 2024. These two million hectares, earmarked for pulses, form part of a larger pool of four million hectares of watershed land identified for farming. Watershed land refers to areas where rainwater naturally collects and flows into rivers, streams, or lakes. Such land retains moisture, making it suitable for growing pulses. The five-year strategy is likely to include targeted investment in irrigation and farmer training for pulse-intensive zones, said the fourth person aware of internal discussions. Binod Anand, agriculture expert and a member of the government's committee on MSP, welcomed the plan. 'Boosting domestic production will ease the pressure on foreign exchange, as we currently spend nearly ₹70,000 crore on importing pulses from non-consuming countries," he said. 'If even 25% of that amount is redirected to support Indian farmers, it would significantly enhance domestic cultivation and reduce our reliance on imports." 'Given the shifting geopolitical landscape," Anand added, 'it is imperative to incentivize pulse farmers and move towards self-reliance, especially since India remains heavily dependent on countries like Myanmar, Mozambique, Tanzania, and Malawi for tur." Government data shows India's pulse imports surged from 2.6mt in FY23 to 6.7mt in FY25—a nine-year high—due to a favourable duty regime and softer domestic prices. Retail inflation, meanwhile, eased to a six-year low of 3.16% in April, driven by declining prices of protein-rich food items, including pulses. Food inflation dropped to 1.78% in April 2025, its lowest since October 2021. Read more: What colour is your dal? If it's yellow, the US wants a free pass.
Time of India
6 hours ago
- Time of India
Incentives needed to boost indigenous manufacturing of battery components: CEA
New Delhi: The centre should introduce targeted incentives to boost domestic manufacturing of critical battery components such as anodes, cathodes, and electrolyte salts to reduce import dependency and strengthen the energy storage ecosystem, according to recommendations made at a recent Central Electricity Authority (CEA) workshop. Held in Delhi on May 8, 2025, the national workshop on 'Renewable Energy (RE) Integration through Energy Storage Systems (ESS)' brought together stakeholders from government, industry, and research institutions to identify bottlenecks and propose actionable solutions to promote battery manufacturing. Participants noted that while India has made progress in cell manufacturing, the country remains heavily dependent on imports for key components like cathode and anode materials, separators, electrolytes, and battery management systems. The absence of local manufacturing for these parts increases project costs and raises supply chain risks. 'There is a need to promote local manufacturing of critical battery components and create a domestic ecosystem to ensure long-term sustainability of the battery energy storage sector,' the workshop report stated. The workshop underlined that incentives for domestic manufacturing of battery components are critical to drive scale and bring down costs. These include demand aggregation mechanisms, viability gap funding (VGF), and targeted support through the Production Linked Incentive (PLI) scheme. The discussion also highlighted the need to integrate the battery value chain with India's broader industrial ecosystem and raw material sourcing strategy. 'Currently, about 90 per cent of critical minerals required for cell production are imported. India must secure long-term supplies through global partnerships, mineral exploration, and recycling,' the report noted. On technology front, stakeholders emphasised the need to support indigenous R&D and develop alternatives to lithium-ion chemistry. With significant interest in sodium-ion, zinc-ion, and flow battery technologies, experts called for increased government funding for pilot projects and testing infrastructure. The workshop concluded with a call for a multi-pronged strategy involving incentives, regulatory clarity, and public-private partnerships to develop a robust and self-reliant battery manufacturing ecosystem. The workshop was attended by officials from the Ministry of Power, Ministry of Mines, Bureau of Energy Efficiency (BEE), NITI Aayog, NTPC, SECI, industry leaders, and battery manufacturers. The initiative was part of India's efforts to scale up battery energy storage to support the 500 GW non-fossil fuel target by 2030.
Time of India
7 hours ago
- Time of India
Power shift: How Tesla's turmoil is steering global capital towards India
In the high-stakes arena of global business and politics, few collisions make markets tremble like the fallout between a tech titan and a political juggernaut. This is exactly what unfolded in early June 2025 when Elon Musk , the CEO of Tesla and SpaceX, clashed publicly with former U.S. President Donald Trump . The result? This was a devastating blow to Tesla's stock, which plunged by over 14% in a single day, wiping out an estimated $150 billion in market capitalisation. This was not just a stock market blip; it was the most severe single-day loss for Tesla since its listing and one of the most dramatic wealth erasures in corporate history. The catalyst? Trump's verbal attacks on Musk during a campaign rally, accusing him of being "disloyal" and threatening to cut off federal contracts and regulatory support for Tesla and SpaceX if he regains the presidency, were also included. Investors responded with a swift selloff, and Tesla's valuation fell below the trillion-dollar mark. Global markets watched in shock as this political-personal feud spilled over into financial chaos. However, amid this volatility lies a powerful truth: in global disruption, emerging markets like India often find their greatest opportunities. As the U.S. grapples with political instability and tech industry turbulence, India stands poised to benefit from capital reallocation, tech realignment, and supply chain diversification. While damaging to U.S. markets, the Tesla shockwave could become a springboard for India's clean-tech and high-growth sectors. India's EV Ecosystem: Charging Ahead as Tesla Slows Down India has been on an accelerated path toward electrification, and Tesla's current struggles have only sharpened the global spotlight on India's domestic electric vehicle (EV) ecosystem. As Tesla faces regulatory headwinds and reduced investor confidence, India's homegrown EV sector is booming, powered by market demand and policy incentives. In the fiscal year 2024–25, India's EV market crossed a new milestone with over 1.7 million electric vehicles sold, reflecting a 96% year-on-year increase. Leading the charge are Indian companies such as Tata Motors, Mahindra Electric, and Ola Electric, which have committed billions of rupees to expand their EV product lines, charging infrastructure, and battery assembly capabilities. The Indian government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles(FAME-II) scheme and the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell Battery Storage worth ₹18,100 crore have further catalysed industry momentum. States such as Tamil Nadu, Gujarat, and Maharashtra have introduced EV-specific policies offering land, tax exemptions, and power subsidies to manufacturers. As global investors rethink high-risk bets in politically volatile environments such as the U.S., they are increasingly drawn to India's policy stability, market scale, and rising consumer demand. Analysts at Morgan Stanley and Goldman Sachs recently highlighted India's EV sector as a 'structural investment theme' for the next decade. Tesla's hiccups may prompt global auto majors to partner with or invest in Indian EV startups as a hedge against Western uncertainty, creating an entirely new lane for India's industrial growth. Supply Chain and Clean-Tech Investment: India as the Next Global Pivot Tesla's valuation collapse was not just a corporate crisis; it exposed the deeper fragility of global supply chains tethered to geopolitical risks. Tesla's core supply lines depend heavily on rare earth elements (REEs), lithium, and semiconductors, many of which are sourced from China, South America, or politically sensitive regions. With U.S.–China tensions rising and Trump threatening tighter trade policies, the world's clean energy future needs new anchors—and India is stepping into that vacuum. In response to the rising global demand and strategic concerns, India unveiled its Critical Minerals Strategy (2023), identifying 30 minerals, including lithium, cobalt, and nickel, as essential for national security and industrial development. The Geological Survey of India discovered a significant 5.9-million-ton lithium reserve in Jammu and Kashmir—India's first—and auction processes are already underway for its commercial extraction. Meanwhile, India's semiconductor manufacturing mission—backed by a ₹76,000 crore incentive package—has begun bearing fruit. Micron Technology, in collaboration with Tata Group, is establishing chip assembly and testing units in Gujarat. These developments are being closely monitored by global players looking to diversify away from China and the U.S. India's proven IT prowess, skilled workforce, and competitive cost structures provide it with a unique advantage in scaling both battery and semiconductor supply chains. According to BloombergNEF, global clean energy investments are expected to cross $2 trillion in 2025, and India is projected to attract nearly $60 billion, up from $45 billion in 2024. The Tesla–Trump debacle added urgency to this diversification. Indian companies working in battery storage, solar inverters, EV components, and green hydrogen can now tap into redirected global capital that would have otherwise flown into American companies. Moreover, India's space technology sector, often overlooked, is quietly booming. As Trump's remarks also targeted SpaceX and its satellite network Starlink, Indian startups like Skyroot Aerospace, Agnikul Cosmos, and Pixxel are seizing the moment to attract international investments. With 30 private satellite launches scheduled for 2025 and a supportive government ecosystem, India's space economy could grow to $13 billion by 2026, up from $7 billion in 2022, according to the EY-ISpA. Disruption for Some, Direction for Others The Musk–Trump standoff may have caused a ripple of fear in U.S. markets, but for India, it is a signal to act. As Western investors reassess the risks of politicised corporate battles, India offers a pragmatic alternative rooted in stable policy, scalable infrastructure, and strategic clarity. The Tesla fallout, while costly for America's most iconic EV brand, might accelerate India's emergence as a global industrial and investment powerhouse. In the wreckage of a $150 billion loss lies the blueprint for India's trillion-dollar leap.
