PMI Electro Mobility faces subsidy fraud allegations under FAME scheme

PMI Electro Mobility Solutions, the country’s second-largest electric bus manufacturer, is suspected of wrongfully claiming subsidies under the Centre’s flagship scheme aimed at promoting faster adoption and manufacturing of electric vehicles.

One government-accredited vehicle testing agency insists the company wrongly availed subsidies under the Faster Adoption and Manufacturing of Electric Vehicles scheme, while another says it is compliant with the rules, Mint reported on Wednesday.

The Ministry of Heavy Industries has now formed a team for a second probe into the allegations against PMI Electro.

The Automotive Research Association of India (ARAI), in its audit report to the ministry in November, said it had found evidence of PMI using imported auto parts in its electric buses, which would make it ineligible to avail of subsidies under the FAME scheme.

PMI Electro Mobility is likely to have received subsidies to the tune of ₹500 crore so far under the FAME scheme, as per Mint’s estimate, considering electric buses typically receive ₹35-50 lakh as subsidies under the scheme, depending on specifications such as length and battery size.

PMI has disputed ARAI’s findings and has denied the allegations, according to the report mentioned above.