Shares of Ola Electric surged more than 4% in trade after the company announced that it has received a sanction order for incentives worth ₹366.78 crore under the Production Linked Incentive scheme for the automobile sector.
In a regulatory update, Ola Electric said the sanction has been granted by the Ministry of Heavy IndustriesGovernment of India, for claims related to the financial year 2024–25 under the PLI–Auto Scheme. The approval covers demand incentives linked to the determined sales value achieved by the company during the year.
The sanctioned amount of ₹366.78 crore will be released through IFCI Limitedwhich is the designated financial institution responsible for disbursement of incentives under the PLI–Auto framework. The release is subject to the applicable terms and conditions of the scheme, as amended from time to time.
The development was positively received by the market, with investors viewing the incentive as a validation of Ola Electric’s execution capabilities, scale of operations, and compliance with localisation norms mandated under the PLI programme. The incentive is aimed at boosting advanced automotive manufacturing in India, with a strong focus on electric mobility and component localisation.
According to the company, the sanction reinforces Ola Electric’s position as a key participant in India’s evolving electric vehicle ecosystem. The approval also reflects the company’s progress in vertically integrated manufacturing and technology-led expansion, areas that are central to the government’s push for self-reliance in the auto and EV sectors.
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