New Delhi, March 8 There is a need to relax the criteria for India's PLI scheme for automobiles to enable electric vehicle start-ups to benefit and contribute to the country's green mobility journey, according to Euler Motors Founder & CEO Saurav Kumar.
The high revenue and investment ceiling outlined in the PLI for the auto sector has meant that a company like Euler Motors, despite being among the top players in the electric small trucks and three-wheeler cargo segment, has not been able to participate in the scheme, Kumar told
According to the eligibility criteria of the auto PLI scheme, an OEM must have a minimum global group revenue of Rs 10,000 crore and invest in fixed assets worth Rs 3,000 crore.
"Unfortunately, this did not incentivize start-ups like us who are also investing in this space and pushing technology and R&D to the forefront," he lamented.
In terms of products, Euler Motors has both electric four-wheeler and three-wheeler commercial cargo vehicles, which are covered under the PLI scheme, Kumar added.
Stating that similar start-ups are also seeking a relaxation of the auto PI criteria, he said there are very few players in the industry that are actually promoting EVs, even in the four-wheeler space.
"So it becomes natural that they should be incentivizing us," Kumar said.
Referring to the investment criteria, he said instead of focusing only on "fixed assets", the scope could be widened to the overall investment that a start-up has made.
"We have already invested close to Rs 1,500 crore... we will be investing another Rs 500 to Rs 1,000 crore in the next two to two-and-a-half years... We are already on that sort of trajectory (for the Rs 3,000 crore investment criteria)," he added.
If the government can relax this and say that "instead of fixed assets, we can focus on the overall investment that we are making, it will be helpful, as that is also a very significant amount of investment in the sector," Kumar noted.
He, however, clarified that a company like Euler Motors has "no qualms" about why the government has made it only for larger champion OEMs, as there "would be certain objective and thought process at the time" when the scheme was framed.
What the company seeks is "our inclusion mainly because we have also invested significantly in terms of capital, Rs 1,500 crore, and we have also generated close to 2,000 jobs...," Kumar said.