Home / Business and Economy / Ather Energy Lands Low-Interest Loan Amidst PLI Scheme Exclusion
Ather Energy Lands Low-Interest Loan Amidst PLI Scheme Exclusion
8 Jun
Summary
- Ather Energy is finalizing 2-3% low-interest loans via government scheme.
- Funding aims to bankroll upcoming electric motorcycle and EL platforms.
- Company excluded from PLI scheme due to stiff entry criteria.
Ather Energy is finalizing a participation in the government's ₹1 trillion research, development, and innovation (RDI) scheme. This initiative will grant the electric vehicle manufacturer access to low-cost, long-term debt funding, crucial for its ongoing projects. The company is arranging a loan facility with interest rates as low as 2-3%, with disbursements tied to project milestones.
This strategic move addresses a funding gap for Ather, which has been excluded from the production-linked incentive (PLI) auto scheme due to its demanding entry criteria. Rivals like TVS Motor, Bajaj Auto, and Ola Electric are currently benefiting from the PLI scheme. The RDI funding is intended for technologies with commercialization potential, supporting Ather's development of its new EL platform and future electric motorcycles.
Experts believe that such patient capital for research is vital for Indian EV companies. Access to lower-cost, long-tenure funding could encourage more aggressive investment in core technologies like battery systems and power electronics. Ather Energy reported a narrowing net loss to ₹517 crore in FY26, with revenue increasing by 66% to ₹3,823 crore.
