IPO bound Ola Electric has received the Domestic Value Addition (DVA) certificate under Production Linked Incentive (PLI) Scheme for the automobile and auto component industry.
The company successfully met the DVA criteria of 50% among others as mandated by the Ministry of Heavy Industries, Government of India, under the PLI Scheme for the automobile and auto component industry, the company noted in a press release.
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.
Ola spokesperson, Ola Electric said, “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.”
Under the scheme, Ola Electric is eligible for incentives for up to five consecutive financial years, commencing from 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 Gigafactory in Krishnagiri, Tamil Nadu.
Also read: Ola Electric’s Giga factory to be operational by March 2024