Reliance Subsidiary Faces Penalties for Delay in Battery Plant under PLI Scheme
Reliance New Energy Battery Storage Ltd., a step-down subsidiary of Reliance Industries Ltd., faces Government fines for delay in setting up a battery manufacturing unit under Centre’s PLI scheme for Advanced Cell Chemistries.
MHI’s Fine on Reliance New Energy for Delay in Setting up Battery Factory
Ministry of Heavy industries (MHI), has fined Reliance New Energy Battery Storage Ltd. (RNEBSL) on account of delay in meeting the first milestone of battery production target under Centre’s PLI scheme for Advanced Cell Chemistries. The fine amounts to Rs. 5 lakh per day (0.1% of Performance Security, i-e, Rs. 50 crore) since 1st January 2025, which comes to a total of Rs. 3.1 crore till March 2025.
In 2022, Reliance’s plan to set up a 10 GW battery unit was approved under Centre’s Rs. 18,100 crore PLI Scheme. As per the PLI, the companies were obligated to achieve a minimum production capacity within 2 years from signing the agreement.
In its stock filing dated 4th March 2025, RIL mentioned that RNEBSL has requested for time extension to meet the aforementioned minimum battery production target.
Reliance Currently Importing Batteries, Production to Start Soon
During the India Energy Week, held in Delhi from 11th to 14th February, Reliance showcased its battery solutions.
During an interaction with CableCommunity, a company representative at Reliance’s stall shared that as of now, the cells used in Reliance’s battery solutions are not being manufactured in India. Lithium cells being used in Reliance’s battery solutions in the market were being manufactured at LithiumWerks’ facility. Reliance had acquired Netherlands-based LithiumWerks and UK-based Faradion in 2022 to strengthen its battery portfolio.
The representative also shared that the company plans to start battery production in India soon.
About Reliance New Energy Battery Storage Ltd.: Reliance New Energy Battery Storage Ltd., a step-down subsidiary of Reliance Industries Ltd., was incorporated on 26th December 2022. The company is engaged in development of Energy storage solutions, including advanced chemistry cells, battery manufacturing (cells, packs, containers), and energy storage systems.
