Govt probing 12 automakers for alleged misappropriation of FAME subsidies

The 12 automakers include Hero Electric Vehicles and Okinawa Autotech, Union heavy industries minister Mahendra Nath Pandey told Parliament

The government is probing 12 automakers including Hero Electric Vehicles and Okinawa Autotech for alleged misappropriation of subsidies under the Rs 10,000 crore FAME scheme, Union Heavy Industries Minister Mahendra Nath Pandey informed Parliament on Tuesday.

The complaints received the government mainly relate to violation of Phased Manufacturing Programme (PMP) guidelines under FAME India Scheme Phase-II, he added.

The other Original Equipment Manufacturers (OEMs) against whom complaints have been received include Benling India Energy and Technology; Okaya EV; Jitendra New EV Tech; Greaves Electric Mobility (formerly Ampere Vehicles Private Limited); Revolt Intellicorp; Kinetic Green Energy & Power Solutions; Avon Cycles; Lohia Auto Industries; Thukral Electric Bikes; and Victory Electric Vehicles International.

"All the complaint cases have been referred to the testing agencies for re-verification. After examination of reports in respect of two OEMs, the models of these two OEMs have been suspended from the FAME scheme.

"Further, the processing of their pending claims has been stopped till they submit sufficient evidence to show their compliance to PMP timelines," the minister informed the Lok Sabha in a reply.

The Ministry of Heavy Industries is implementing the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) scheme to promote adoption of electric/hybrid vehicles in the country.

At present, Phase-II of FAME India Scheme is being implemented for a period of 5 years, from 1 April, 2019 with a total budgetary support of Rs 10,000 crore.

This Phase focusses on supporting electrification of public and shared transportation through subsidies for 10 lakh e-2 wheelers (e-2Ws), 5 lakh e-3 wheelers (e-3Ws), 55,000 e-4 wheelers (e-4Ws) passenger cars, and 7,090 e-buses.

As on December 9, 2022, 64 original equipment manufacturers of electric vehicles have been registered and 7.47 lakh EVs under FAME India Phase II have been sold, the minister said in the reply.

Under FAME India Scheme Phase-II, the demand incentive/ subsidy is given to consumers (buyers/end users) in the form of an upfront reduced purchase price of hybrid and electric vehicles to enable wider adoption, which is reimbursed to the OEMs by the government.

"The Ministry has received complaints regarding misappropriation of subsidies under the Government's FAME India Phase II scheme by some electric vehicles manufacturers," Pandey said in the reply, adding that the complaints mainly related to the violation of Phased Manufacturing Programme guidelines.