Ola Electric has become the first Indian e-scooter company to become eligible for the production-linked incentive (PLI) scheme. The Ministry of Heavy Industries (MHI) has given its approval after a four-month-long process.

Ola Electric has successfully met the stringent eligibility assessment requirements outlined in the PLI Scheme, including a minimum of 50 percent domestic value addition to its vehicles. PLI certification will empower Ola Electric for benefits ranging from Rs 15,000 to 18,000 per unit. The financial boost is expected to drive increased penetration of EVs across the country.

To qualify for this scheme, e-scooter startups need to invest at least Rs 1,000 crore. Other major players like Hero MotoCorp, TVS Motor Company, and Bajaj Auto have also applied for the PLI scheme. 

The PLI-Auto Scheme, approved in 2021 with an outlay of Rs 25,938 crore, aims to boost domestic manufacturing of Advanced Automotive Technology (AAT) products. The scheme provides financial incentives of up to 18 percent of eligible sales for EV vehicles and their components.

Ola Electric plans to expand its EV business and set up a facility for manufacturing lithium-ion cells.