Business News/ Industry / Energy/  Hyundai Global pulls out of battery PLI

NEW DELHI : Hyundai Global Motors Co. Ltd has withdrawn from the production-linked incentive (PLI) scheme for advanced chemistry cell battery storage after the South Korean automobile major clarified it had nothing to do with the company that bid for the 18,100 crore government scheme.

The government is now likely reallocate 20 gigawatt hour (GWh) of capacity to Reliance New Energy Ltd, the clean energy arm of Reliance Industries, and Mahindra & Mahindra Ltd—the next two eligible firms on the list—said two people aware of the development.

After the government announced the names of the selected applicants, Hyundai Motor India Ltd (HMIL) issued a public notice on 15 July saying Hyundai Global Motors is not an affiliate, subsidiary or group company of either Hyundai Motor Company, South Korea or HMIL.

“Hyundai Motor Company and HMIL urges the general public, traders, business associates and all government and non-government bodies to proceed with caution while dealing with Hyundai Global Motors Co. Limited, South Korea as they are not related to our company," HMIL said.

On 28 July, the government signed agreements with Rajesh Exports Ltd, Ola Electric Mobility Pvt Ltd and Reliance New Energy Ltd.

But it kept the agreement with Hyundai Global Motors on the backburner amid concerns over the eligibility of its application and initiated a re-examination.

While Hyundai Global Motors was among the initial selected applicants for the scheme, the government did not sign an agreement with the company as it initiated the re-examination of its application post the Korean automobile major Hyundai Motor Company coming out with the clarification.

“Hyundai Global has withdrawn from the PLI amid the re-examination from the government, and the 20 GWh would be reallocated amount to the next eligible players," said one of the two officials mentioned above.

Reliance New Energy Ltd is the next in line eligible applicant—it was initially allocated only 5 GWh capacity although it had bid for 20 GWh.

As per a ministry of heavy industries statement on 24 March naming the selected applicants, the remaining 15 GWh of quoted capacity by Reliance was designated as ‘waitlisted’.

“The announcement on reallocation of the capacity may be made soon," said the other official. Both did not want to be named.

The next eligible player in the list is Mahindra & Mahindra Ltd which was not selected initially and the 15 GWh of capacity it had quoted was also designated as ‘waitlisted’.

Queries sent to spokespersons of the ministry of heavy industries, NITI Aayog, Reliance Industries and Mahindra & Mahindra remained unanswered till press time.

Hyundai Global Motors Pvt Ltd could not be reached.

Rituraj Baruah
Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
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Updated: 29 Aug 2022, 12:55 AM IST
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