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Ola Electric Technologies Private Ltd has been sanctioned an incentive payment of ₹73.74 crore under the Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components for the financial year 2023-24. This milestone, confirmed through a regulatory filing by Ola Electric Mobility Limited, likely positions the company as the first two-wheeler manufacturer to receive such an incentive.
"The payment of ₹73,74,36,612/- (Rupees Seventy-Three Crores Seventy-Four Lakhs Thirty-Six Thousand Six Hundred and Twelve only) has been sanctioned towards the incentive for the Determined Sales Value of FY 2023-24, as per existing terms and conditions of the PLI-Auto Scheme," the company stated in its filing.
The incentive pertains to the company's sales performance in the fiscal year 2023-24 and aligns with the objectives of the PLI scheme, a key policy initiative introduced by the Indian government to enhance domestic manufacturing.
Launched in 2020, the PLI scheme was initially introduced for electronics manufacturing before expanding to cover 13 key sectors, including automobiles and auto components. With a total budget outlay of ₹1.97 lakh crore (approximately $26 billion), the scheme aims to boost domestic production, attract investment, enhance exports, generate employment, and strengthen India’s manufacturing capabilities.
The scheme provides financial incentives ranging from 4% to 6% of incremental sales, depending on the sector, and disburses these incentives over five years.
Approved in September 2021 with a budgetary allocation of ₹25,938 crore, the PLI-Auto scheme specifically targets advanced automotive technology, including electric vehicles (EVs), hydrogen fuel cell vehicles, and other next-generation mobility solutions. The scheme benefits two key categories: Champion Original Equipment Manufacturers (OEMs), which focus on manufacturing advanced automotive technology vehicles, and Component Champions, which include non-automotive companies entering the sector and manufacturers of high-value automotive components.
The program incentivises manufacturers based on their Determined Sales Value, considering factors such as battery capacity, vehicle range, and localisation of components. To qualify, companies must meet investment thresholds and domestic value addition requirements.
Ola Electric’s ₹73.74 crore incentive highlights the scheme’s role in supporting India’s transition to sustainable mobility. The PLI-Auto scheme prioritises localisation, reducing import dependency, and fostering an ecosystem for advanced vehicle technologies.
By encouraging domestic production, the initiative aims to position India as a global leader in automotive manufacturing, particularly in emerging technologies like EVs. This, in turn, is expected to reduce the country's trade deficit while generating employment opportunities in the sector.
With strong participation from automakers and new-age EV manufacturers, the PLI-Auto scheme is set to play a crucial role in shaping India’s automotive landscape for years to come.
