Bangalore-based Ola Electric announced that it is now certified as meeting the eligibility assessment standards of the Production Linked Incentive (PLI) Scheme for automobiles and auto components (PLI-Auto) for two of its vehicles, becoming officially in compliance now.

The two vehicles which have been certified are the S1 X 3 kWh and S1 X 4 kWh scooters for meeting about 50 percent minimum localization requirement.

Certified earlier this year, the S1 Air and S1 Pro scooters from Ola are now expected to have the company with these versions.

DVA certified is deemed vital to serve eligible for any type of government incentives for about five years.

“These two products make almost 50 percent of our orders. More wind in our sails as we build India’s EV future!” Ola Electric founder Bhavish Aggarwal said in a post on microblogging platform X.

The percentage of the scooters' determined sales value (DSV) that Ola Electric will get as compensation could vary from 13 percent to 18 percent.

Benefits are available to the company for a period of five years, beginning in FY24.

Ola’s scooters received approval under PLI after many months from the government's primary FAME II (Faster Adoption and Manufacturing of Electric Vehicle) subsidy for the EV industry which ended in March.

Starting on April 1, the Electric Mobility Promotion Scheme (EMPS) took the place of the subsidy.

Union Heavy Industries Minister HD Kumaraswamy stated on August 5 that the new FAME 3 subsidy is being prepared for and that several ministries have submitted suggestions on how to carry out the initiative.

In addition to Ola, PLI certificates have been awarded to applications such as Toyota Kirloskar, Ashok Leyland, Tata Motors, and Mahindra & Mahindra (M&M).

Furthermore, Ola Electric received a 20 GWh capacity award in March 2022 under the government's PLI program for Advanced Chemistry Cell (ACC) battery storage.

The Cell PLI program would provide incentives to the company for a period of five years, beginning with the commissioning of the Ola Gigafactory in Krishnagiri, Tamil Nadu.