Bajaj Auto has received production-linked incentive (PLI) approval for all 13 vehicles it applied for, including both two-wheelers and three-wheelers. This achievement makes Bajaj Auto the only company to secure approval for every product it submitted under the PLI scheme, according to sources from CNBC-TV18.
Key Points:
- PLI Approval: Bajaj Auto has received approval for all 13 vehicles it sought incentives for under the PLI scheme.
- Two and Three-Wheelers: The approval covers both two and three-wheelers.
- Domestic Value Addition: The company met the domestic value addition criteria, qualifying it for the incentives.
Earlier this week, Ola Electric also received PLI certification for two additional vehicles, the 3 KwH and 4 KwH versions of its Ola S1X. Ola’s eligibility was confirmed after meeting the stringent minimum localization criteria of 50% set by the Ministry of Heavy Industries.
Overview of the PLI Scheme:
The PLI scheme for the automobile and auto components sector was expanded to ₹3,500 crore in the 2024-25 budget, up from ₹484 crore in the revised estimates for 2023-24. The scheme has attracted proposed investments totaling ₹67,690 crores, with ₹14,043 crore in capital investments by March 2024. It has also led to the creation of 28,884 jobs out of the projected 1.48 lakh.
Budget and Duration:
- Total Outlay: ₹25,938 crore
- Duration: FY23 to FY27
- Categories: Champion OEM Incentive Scheme and Component Champion Incentive Scheme
Additionally, the government has launched the National Programme on Advanced Chemistry Cell (ACC) Battery Storage with a budget of ₹18,100 crore, approved in May 2021.
Bajaj Auto’s shares closed at ₹9,779.70 on August 21.
