PLI initiative puts EV production in fast lane

Revving Up

♦ Approved outlay of Rs25,938 cr

♦ Centre already okayed 50 of 74 applications

♦ Remaining 24 applications under review

♦ Investments reached Rs17,896 cr in FY24

♦ And incremental sales crossed Rs3,370 cr

New Delhi: To bolster the domestic electric vehicle (EV) manufacturing, the government’s production-linked incentive (PLI) scheme with an approved outlay of Rs25,938 crore, along with some other key initiatives, have brought a significant change for the industry. The Centre has already approved 50 of the 74 applications it received from automakers for the PLI schemes in the EV sector and remaining 24 applications are under review.

According to approved applicants under the main PLI scheme, investments reached Rs17,896 crore and incremental sales crossed Rs3,370 crore (up to March 31).Under the PLI scheme, automakers can receive a government grant of 13-15 per cent of the annual sales value of EVs, which helps increase the company’s sales and offsets the higher costs of investing in new technologies.