Hello Kiran
In MPLS L3 VPNs, each route received by the PE router from a customer will be assigned a unique VPNv4 label. So, if customer A advertises 10 different routes to the PE router, the PE router will create 10 different VPNv4 labels, one for each route. This is because the PE router needs to keep track of each individual route separately for forwarding purposes. This process is essential for maintaining the isolation between different VPNs on the same PE router.
I hope this has been helpful!
Laz