Ola Electric receives PLI Automotive Certificate from ICAT

PTI, Mar 4, 2024, 8:15 PM IST

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Automotive testing agency International Centre for Automotive Technology on Monday awarded the PLI-Automotive Certificate to Ola Electric Technologies under the production-linked incentive (PLI) scheme.

”Ola Electric’s Battery Electric Vehicle – 2W (Ola S1 Pro Gen2) met the criteria of minimum DVA (domestic value addition) of 50 per cent for the Automotive PLI certificate, demonstrating their commitment to the indigenisation of advanced automotive technology products,” International Centre for Automotive Technology (ICAT) said.

Ola S1 Pro (Gen2) two-wheeler, which has been on-road since September 2023, will now be able to avail incentives under the PLI scheme from the date of issuance of the certificate, a senior Ola Electric official said.

”With this certificate, which has gone through a process of due diligence, OLA will now be entitled to a Production Linked Incentive (PLI) payable by the Ministry of Heavy Industries,” ICAT Director Saurabh Dalela told PTI.

ICAT, Manesar, is one of the divisions of the National Automotive Board (NAB) – under the Ministry of Heavy Industries. ICAT and ARAI (Automotive Research Association of India) are key testing agencies in the country.

Asked how much money will be disbursed to Ola Electric under the PLI scheme for automobile and auto components, Hanif Qureshi, Additional Secretary in the Ministry of Heavy Industries, said: ”It depends on the sales volumes. The upper limit is 25 per cent of the scheme allocation — Rs 25,938 crore”.

The incentive claims under the PLI scheme for Automobiles and Auto Components are currently disbursed on an annual basis. Therefore, the companies, which are awarded certificates in 2023-24, can file claims for payout incentives in 2024-25.