on Wednesday said it has received domestic value addition certificate under the production linked incentive scheme for the automobile and auto component industry.
The company successfully met the domestic value addition (DVA) criteria of 50% among others as mandated by the Union Ministry of Heavy Industries, under the Production Linked Incentive (PLI) scheme for automobile and auto component industry, Ola Electric said in a statement.
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, it added.
The company claimed it has become the first Indian two-wheelers company to receive the DVA certificate under the PLI scheme.
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“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,” a spokesperson of Ola Electric said.
The government’s auto PLI scheme will certainly go a long way in localising supply chains and boosting domestic manufacturing while also helping companies achieve economies of scale, the spokesperson added.
The company said under the scheme, it is eligible for incentives for up to five consecutive financial years, commencing from FY24. The incentive would range between 13% and 18% of the determined sales value (DSV).
Edited by Affirunisa Kankudti
