Shares of Reliance Industries were trading flat on Thursday after the company received a massive contract from the Government of India. The announcement comes as the company also looks to hold its board meeting on Thursday.

What Happened: Reliance Industries secured the top spot in the bid for advanced chemistry cell (ACC) capacity under the production linked incentive (PLI) scheme. The announcement was made by the Ministry of Heavy Industries (MHI), Government of India.

The Mukesh Ambani-owned company has been awarded 10 gigawatt-hours of ACC capacity. This initiative is part of the government’s broader strategy to promote domestic manufacturing, decrease import reliance, and establish India as a global leader in ACC battery manufacturing, a government statement said.

The MHI had invited bids from seven companies through a global tender for the re-bidding of PLI. The maximum budgetary outlay for this was set at ₹3,620 crore. The financial bids for the qualified bidders were opened on August 2, after the announcement of the technical evaluation results.

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In May 2021, the Cabinet approved the technology-neutral PLI Scheme for the "National Programme on Advanced Chemistry Cell (ACC) Battery Storage" to achieve a manufacturing capacity of 50 gigawatt-hours of ACC, with a budget of ₹18,100 crore.

The first round of bidding for this scheme was completed in March 2022, with three companies being allocated a total of 30 gigawatt-hours capacity. Agreements with the selected firms were signed in July 2022.

The company is due to hold its board meeting later today to consider the issue of bonus shares. Last month, the company said that the board will consider and approve the issue of bonus shares in the ratio of 1:1. This means an investor will get one share for every share they hold in the company.

Price Action: Reliance’s shares were up 0.61% to ₹3,047.60 on Thursday morning.

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