Reliance Industries Shares in Focus; Requests Extension for EV Battery Manufacturing

Reliance Industries Limited (RIL) saw a 1.21% rise in its share price on March 5, 2025, reaching ₹1,176 as of 11:50 AM on the NSE. The stock opened at ₹1,161, touched an intraday high of ₹1,177.40, and recorded a low of ₹1,157.

PLI Scheme and Reliance’s Commitment

In March 2022, Reliance was awarded incentives under the government’s PLI scheme to develop 5 gigawatts (GW) of advanced chemistry cell (ACC) manufacturing capacity. The ₹181 billion ($2.07 billion) program requires participating companies to complete their manufacturing setups within a two-year timeframe to promote local battery production.

This initiative aligns with India’s vision to scale up EV adoption, aiming for 30% of total car sales to be electric in the coming years. However, as of now, electric vehicles constitute only about 2% of total car sales in the country.

Government Imposes Penalty on Delay

Due to the delay in setting up the plant, Reliance’s EV battery unit has received a notice from the Ministry of Heavy Industries, imposing a penalty. As of March 3, 2025, the penalty stands at ₹31 million ($355,293).

Despite the setback, Reliance remains committed to its EV battery plans. The extension request highlights the challenges associated with setting up large-scale battery manufacturing in India, including supply chain constraints and technological requirements.

Conclusion

Reliance Industries’ request for an extension to set up its EV battery plant under the PLI scheme underscores the complexities of large-scale battery manufacturing in India. While the delay has resulted in a financial penalty, the company remains committed to strengthening India’s EV ecosystem.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.