Ola Electric Receives Certification for Second Product Under PLI Scheme
Ola Electric, a prominent player in the electric vehicle (EV) industry, has secured certification for its second product under the Production-Linked Incentive (PLI) scheme for the automobile and auto component industry. Sources familiar with the matter revealed this development to Moneycontrol, requesting anonymity.
According to the sources, Ola Electric’s S1 Pro (Gen-2) has obtained the Domestic Value Addition (DVA) certification under the Auto PLI Scheme, marking it as the second electric scooter from Ola’s portfolio to receive such approval. Earlier in January, the Bengaluru-based EV manufacturer had received the DVA certificate for its S1 Air scooter, making it the pioneer two-wheeler EV maker to achieve eligibility under the scheme sanctioned by the Ministry of Heavy Industries.
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“The company applied for PLI certification for S1 Pro in the second half of October at ICAT, Manesar, and received the certification on February 9, 2024. Ola S1 Pro and Ola S1 Air are now eligible for subsidies under the government’s Auto PLI scheme for five years from the date of certification,” disclosed one of the informed sources.
An emailed query directed to the spokespeople at the Ministry of Heavy Industries and Ola Electric spokesperson remained unanswered at the time of publication.
Under the PLI scheme, Ola Electric stands eligible for incentives for up to five consecutive financial years, beginning from fiscal year 2023-24. The incentives are anticipated to range between 13 percent and 18 percent of the determined sales value (DSV) of the products.
In December, Ola Electric submitted its Draft Red Herring Prospectus (DRHP) to the market regulator, the Securities and Exchange Board of India (SEBI). The company aims to raise Rs 7,250 crore through a fresh issue of shares and an offer-for-sale (OFS) of shares. Out of the raised capital, the company plans to allocate Rs 1,226 crore towards capital expenditure and Rs 800 crore towards debt repayment.
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Established in 2015 by Bhavish Aggarwal, Ola Electric has established a gigafactory in Krishnagiri, Tamil Nadu. The company intends to expand Ola’s EV business and establish India’s inaugural lithium-ion cell manufacturing facility in Tamil Nadu.
The Bangalore-based EV manufacturer’s consolidated revenue for FY23 amounted to Rs 2,782 crore, marking a substantial increase of nearly 510 percent from the previous year. However, its net loss widened to Rs 1,472 crore, doubling from the Rs 784 crore reported in FY22.
