Bajaj Auto Secures PLI Approval for All 13 Vehicles

22 Aug 2024 , 03:32 PM

Bajaj Auto has received approval for all 13 vehicles it applied for under the Production-Linked Incentive (PLI) scheme, according to sources on August 22.

The approval covers both two-wheelers and three-wheelers, making Bajaj Auto the only company to get approval for all its requested products under the PLI scheme.

Bajaj Auto has met the domestic value addition criteria required under the PLI scheme, making the company eligible for the associated incentives.

Earlier this week, Ola Electric announced that it received PLI certification for two more of its vehicles, specifically the 3 kWh and 4 kWh versions of the Ola S1X.

Ola Electric’s vehicles met the 50% minimum localization criteria mandated by the Ministry of Heavy Industries, qualifying them for PLI benefits.

Ola’s CEO, Bhavish Aggarwal, noted that the company is the largest beneficiary of the Indian government’s PLI scheme, having secured a 20 GWh allocation for its GigaFactory.

The GigaFactory, under construction in phases, aims for a 5 GWh capacity in Phase 1, with trial production for 1.5 GWh already underway.

Ola Electric also received BIS certification for the 4680 cell, which will allow the company to begin integrating its own cells into its EVs by early next year.

The PLI scheme for the automobile and auto components sector was increased to ₹3,500 Crore in the Budget for 2024-25, up from ₹484 Crore in the Revised Estimates for 2023-24.

According to the Economic Survey 2023-24, the scheme has attracted proposed investments totaling ₹67,690 Crore, with capital investment reaching ₹14,043 Crore as of March 2024.

The initiative has led to the creation of 28,884 jobs, with a projection of 1.48 lakh jobs under the scheme.

To date, 85 applicants have received approval under the PLI scheme, which spans from FY23 to FY27 and has a budgetary outlay of ₹25,938 Crore.

The PLI scheme is divided into two categories: the Champion OEM Incentive Scheme and the Component Champion Incentive Scheme.

Additionally, the government launched the National Programme on Advanced Chemistry Cell (ACC) Battery Storage with a budget of ₹18,100 Crore, approved in May 2021.