After Tata Motors and M&M, Ola Electric files for PLI sops
Ola Electric has applied for certification to claim incentives under the government's production-linked incentive (PLI) scheme, becoming the third auto company eligible for subsidies after Tata Motors and Mahindra & Mahindra, a senior industry executive aware of the development said.
All three are eligible to claim subsidies under the ₹25,938 crore-PLI scheme for auto and auto parts makers floated by the ministry of heavy industries (MHI) to promote local manufacturing.
«It (certification for Ola Electric) is in process. Three Indian companies have so far applied for certification (to Automotive Research Association of India or ARAI) under PLI Auto.
They can start claiming incentives from the day of receiving the certification for sales in 2023-24,» a senior government official told ET on condition of anonymity.
A query to Ola Electric seeking update on the status of the certification did not elicit any response till press time Tuesday.
In April, the ministry of heavy industries (MHI) had approved the final standard operating procedure (SOP) defining the formula for calculating the local value addition required in products to claim incentives under PLI Auto.
Automakers are required to have 50% domestic value addition in products to be eligible for claiming subsidies. While Tata Motors received certification from ARAI for the Tiago EV earlier this month, Mahindra Last Mile Mobility got certification for its electric three-wheeler in June 2023.
Maruti Suzuki, Hero MotoCorp, Bosch, Lucas-TVS, Mitsubishi Electric, Motherson Sumi, Tata Autocomp, Hyundai Motor India and Toyota Kirloskar were among the 95 applicants approved under the PLI scheme for automobile and auto component companies in March 2022.
