Ola Electric has become the first Indian 2-wheeler company to receive domestic value addition (DVA) certificate under Production-Linked Incentive (PLI) Scheme for automobile and auto component industry, claims a company release.
'The company successfully met the DVA criteria of 50% among others as mandated by the Ministry of Heavy Industries under the PLI Scheme for automobile and auto component industry,' the release said.
The certification has been granted by The Automotive Research Association of India (ARAI) after testing of the product and checks on the localisation standards of the components.
“The proactive approach of the government in implementing the PLI Scheme for automobile and auto component industry will certainly put India on a fast lane to becoming the manufacturing superpower of the world. The PLI certification is a testament to our vertically integrated manufacturing capabilities and a significant milestone in our quest to accelerate India’s journey towards clean mobility,” said the release.
Under the scheme, Ola Electric is eligible for incentives for up to five consecutive financial years, commencing fiscal 2024. The incentive would range between 13% and 18% of the “determined sales value” (DSV).
Ola Electric has also been awarded 20GWh capacity by the government under its PLI scheme for advanced chemistry cell (ACC) battery storage in March 2022. The company is eligible to receive incentives under the Cell PLI scheme over a five-year period from the date of commissioning of the Ola Giga factory at Krishnagiri in Tamil Nadu.
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