Bajaj Auto gets approval for all 13 vehicles under PLI
Bajaj Auto has successfully secured approval for all 13 of its vehicles under the Indian government's Production Linked Incentive (PLI) scheme, according to CNBC-TV18. The company is the first to receive such comprehensive approval, encompassing both two and three-wheelers. According to the report, Bajaj Auto has met the domestic value addition criteria required by the PLI scheme.
Ola Electric also benefits from PLI scheme
In related news, Ola Electric announced earlier this week that it has received PLI benefits for two additional vehicles. The 3kWh and 4kWh versions of the Ola S1X have been certified as compliant with the eligibility requirements of the PLI scheme. This certification was granted after these models successfully met the Ministry of Heavy Industries' stringent minimum localization criteria of 50%.
Future plans and PLI scheme benefits
Ola Electric's CEO, Bhavish Aggarwal, revealed last week that his company is the largest beneficiary of the PLI scheme with a 20GWh allocation. The firm has already initiated trial production for 1.5GWh of this capacity at its GigaFactory, which is being built in phases. Aggarwal also shared that Ola received the BIS certification for the 4680 cell and plans to begin fitting its EVs with these cells by early next year.
PLI scheme's budget and impact on auto sector
The Indian government has significantly increased the budget for the PLI scheme in the automobile and auto components sector. The allocation has risen to ₹3,500 crore for 2024-25 from ₹484 crore in the Revised Estimates for 2023-24. According to the Economic Survey 2023-24, this initiative has attracted proposed investments totaling ₹67,690 crore and led to capital investment of ₹14,043 crore as of March 2024.
Contribution to job creation and future plans
The PLI scheme has also contributed significantly to job creation in India. Out of the projected 1.48 lakh jobs, it has already created 28,884 jobs. As of now, a total of 85 applicants have received approval under this initiative. The PLI scheme, which runs from FY23 to FY27, has a budgetary outlay of ₹25,938 crore and is divided into two categories: the Champion OEM Incentive Scheme and the Component Champion Incentive Scheme.
