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Hero Electric, Okinawa, And Five More EV Makers Told To Refund FAME II Incentives - Central Govt
FAME II was a significant initiative by the Government of India to promote the adoption of electric mobility in India. Under the scheme, the government provides financial support to both manufacturers and buyers of EVs.
Few months back, it came to light that few manufacturers took advantage of the scheme by violating its norms. Under the FAME II scheme, EV makers are only supposed to use locally manufactured EV components.
The idea of the central government was to promote indigenization and encourage domestic production of EVs. But some manufacturers used components that are imported from countries like China, to further reduce their production cost.
As a result, the Indian government has demanded several electric two wheeler manufacturers to return FAME II incentives worth Rs 469 crore. Seven electric two-wheeler companies, including Hero Electric and Okinawa Autotech, have been asked to refund the incentives for not complying with the norms.
The manufacturers have a grace period of 10 days to return the amount or they'll lose the eligibility for the scheme. The Ministry of Heavy Industries had carried out an investigation against 12 electric two wheeler manufacturers for suspected misuse of subsidies under the Rs 10,000 crore FAME scheme.
According to the investigation, out of the 12 manufacturers probed, seven were found to have flouted the norm. The government's decision is said to be based on concrete evidence collected as part of the investigation.
"In our investigations, six companies have been found clean, but seven companies have violated the norms. So we are seeking Rs 469 crore. They will have to return the amount to the government," an official said to PTI.
Besides Hero Electric and Okinawa Autotech, the other EV makers who are under the scanner are Ampere EV, Revolt Motors, Benling India, Amo Mobility, and Lohia Auto. Reacting to the development, Hero Electric denied it will have an impact on the manufacturer.
Apart from Hero Electric and Okinawa Autotech, other popular EV makers such as Ampere EV, Revolt Motors, Benling India, Amo Mobility, and Lohia Auto are also being investigated by the authority.
Thoughts On Central Govt Asking EV Manufacturers To Refund FAME II Incentives
The FAME II scheme is designed to promote the adoption of EVs and to ensure the transparency of the scheme, the government has the right to take necessary disciplinary action against the manufacturers who break the rules.
It is necessary that we understand the significance of proper implementation and monitoring of incentive programs like FAME II, as it plays a huge role in the growth of the EV industry, which is the major catalyst in India's transition towards sustainable and cleaner transportation.
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