The trading prices of Reliance Industries Limited and Rajesh Exports Limited were on a downward trend today. Reliance Industries Limited was trading at ₹1,162.55, a decrease of ₹37.55 or 3.13%, while Rajesh Exports Limited was trading at ₹155, down by ₹4.22 or 2.65% on the NSE at 11.45 am.
Both companies, Reliance New Energy Ltd. and Rajesh Exports Ltd., are facing potential penalties of up to ₹125 crore each for failing to meet deadlines for battery cell manufacturing commitments under India’s Production-Linked Incentives (PLI) program. This initiative, led by Prime Minister Narendra Modi, aims to reduce import dependence for electric vehicle components. Companies were eligible for subsidies totaling ₹18,100 crore upon meeting project milestones, including minimum capacity targets and local value addition of 25% within two years.
While Ola Cell Technologies Pvt. has been making progress with trial production starting in March last year and commercial production planned for Q2 2024, Reliance and Rajesh Exports have encountered delays in their projects. Industry analysts attribute this to declining global lithium-ion battery prices, making imports more cost-effective and creating uncertainty around domestic demand. The substantial capital investment required for lithium-ion battery plants, estimated at $60-80 million per gigawatt-hour, poses a challenge for companies.
Reliance Industries has reportedly shifted its focus towards green hydrogen initiatives, reflecting a change in priorities. Despite these challenges, representatives for Reliance Industries, Rajesh Exports, and India’s Heavy Industries Ministry did not offer comments on the matter.
The article was published on March 3, 2025.
