Ather Energy CEO Tarun Mehta bats for ‘inclusive PLI scheme'

Tarun Mehta , co-founder and CEO of recently listed electric scooter maker Ather Energy, on Friday said if India wants to lead in hardware and deep tech, production-linked incentive (PLI) schemes need to back the next generation of builders.

The ₹25,938 crore production-linked incentive (PLI) scheme for the automobile and auto component industry has a revenue barrier as automakers with global group revenue of ₹10,000 crore were eligible.

“We need early-stage startups to feel confident investing in R&D, building for global markets, and taking bold bets from day one. That’s where inclusive PLIs make a difference,” Mehta said in a post on X

“They lower barriers, bring more players into the game, and strengthen local supply chains. That’s what really unlocks scale, not just in manufacturing, but in IP, talent and product innovation too. This isn’t just about incentives, it’s about belief. That world-class hardware can be imagined, engineered and built here, at scale, across sectors,” he said.

Mehta’s comments come after Lok Sabha MP Tejasvi Surya suggested inclusive PLI schemes in a meeting of Parliamentary Consultative Committee on Finance. “PLI schemes must support start-ups, not just large players. For example, EV-related PLIs currently have high revenue thresholds that exclude many deserving early-stage companies,” said Surya.

In India’s electric two-wheeler space, legacy players such as Bajaj Auto and TVS Motor are eligible for PLI. Ola Electric, too, was eligible for PLI, thanks to the company's group revenue from its ride-hailing business. PLI incentives range from 13% to 16%.

In an interview with Fortune India earlier, Mehta had said that PLI has a structural issue. “We have been urging the government to relook. If Ather, which has made the biggest investment in R&D on electric two-wheelers, can’t claim PLI, who did you design it for?” he asked.

PLI should have been designed to encourage newer players to put up new capacities to drive new ecosystem growth, Mehta said. “I think there is a missing piece here. We are still powering through it because we have raised capital. It is hard. It needs a relook. It’s a good idea for EVs but if we don’t fix some of these things systematically, I think we will get hamstrung at step one,” he said.