Ola Electric 1st electric vehicle company to get PLI approval: Reports

New Delhi, Dec 31 : IPO-bound Ola Electric has reportedly become the first Indian e-scooter (e2W) company to get eligible for the government’s production-linked incentive (PLI) scheme.

The approval has come from the Ministry of Heavy Industries (MHI) and the process took almost four months, according to multiple reports.

There was no official word from either the government or Ola Electric.

The other applicants for the PLI scheme are Hero MotoCorp, TVS Motor Company, Bajaj Auto and more.

For e2W startups, fresh investment of Rs 1,000 crore is required to avail of the PLI scheme.

Last week, the homegrown electric two-wheeler manufacturer filed its draft red herring prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (SEBI).

The fresh issue component will consist of Rs 5,500 crore and the balance would be the OFS (offer for sale) category, around Rs 1,750 crore.

This will be the first-ever IPO by an Indian EV firm.

Ola Electric plans to expand its EV business and establish a lithium-ion cell manufacturing facility.

Meanwhile, Ola Electrics net loss nearly doubled to Rs 1,472 crore in FY23, from Rs 784.1 crore in the previous fiscal year, as expenses surged significantly.

The electric vehicle company reported an EBITDA loss of Rs 1,318 crore as its total expenses jumped to Rs 3,383 crore, in comparison to Rs 1,240 crore in FY22.

na/prw