Page 3 - Subsidy

Electric 2-wheeler demand slowing down due to reduced subsidy: CARE Ratings

The reduction in FAME subsidy is slowing down demand for electric two wheelers and the manufacturers will now have to focus on achieving price reduction through R&D and innovation, a report said on Thursday. The medium term sales trajectory for two wheelers, which include e-two wheelers as well, is anticipated to be modest, characterised by uncertainties and driven by a host of factors, it said. In its report, CARE Ratings said the core segments of two wheelers, specifically the 75 cc - 110 cc range in motorcycles and the 75 cc - 125 cc range in scooters, have shown a sharp sales volume decline from FY19 to FY22, with a slight recovery seen in FY23. Sales of electric two wheelers also significantly declined in Q1 FY24 due to the government withholding FAME subsidies for certain Original Equipment Manufacturers (OEMs), it said. Additionally, the report said that a subsidy reduction to Rs 10,000 per kWh from Rs 15,000 per kWh and 15 per cent of the ex-factory price from 40 per cent .

Electric 2-wheeler firms suffer over Rs 9,000 cr loss after subsidies stop

Seven electric two-wheeler companies have suffered a cumulative loss of over Rs 9,000 crore on account of unpaid dues and loss of market after their subsidies were stopped last year, the Society of Manufacturers of Electric Vehicles (SMEV) said on Wednesday. These companies have also been directed by the govt to refund the subsidies availed by them. The audit by SMEV's chartered accountants indicates the total, cumulative damages to affected companies could account for over Rs 9,000 crore on a conservative basis, it noted. This cursory audit estimates cumulative losses on account of unpaid dues, interest, debt, loss of market share, reputational loss, cost of capital and potential recapitalisation, to around Rs 9,075 crore ever since the Ministry of Heavy Industries held up their subsidies since 2022, SMEV said. The fact is some may never recover, and some may just wind up, it added. Highlighting the need for a speedy resolution, SMEV Chief Evangelist Sanjay Kaul pointed out it is

Tea Board should have authentic database of industry for subsidy: CAG

The government auditor CAG on Tuesday said that the Tea Board should have authentic database of the industry for formulation of policies and implementation of various subsidy schemes. However, Tea Board did not maintain a database regarding areas of extensions of tea plantations, replacement and replanting of tea, age of tea bushes, district-wise yield, and labour productivity rate of the tea industry. It also said that the board has disbursed subsidy amounting to Rs 12.87 crore without adhering to certain guidelines under various schemes such as Plantation Development Scheme, Quality Upgradation and Product Diversification Scheme and Orthodox and Green Tea Production Scheme. It said that although the levy of fees for the issuance of planting permits was approved by the Board, non-collection of the same has resulted in the loss of revenue of Rs 41.36 lakh. "Due to delay in implementation of provisions of Goods and Services Tax (GST), Tea Board did not collect the same on licenses .

Customers be asked to refund rebate on EV purchases amid subsidy revocation

Facing heat over alleged misuse of subsidies, a grouping of seven electric two-wheeler makers on Friday urged the government to look at the possibility of asking customers to pay back excess rebate availed by them on purchase of the vehicles. In a letter to Minister of Heavy Industries M N Pandey, the Society of Manufacturers of Electric Vehicles (SMEV) said the customers who have taken such subsidies can be asked to return these to the affected OEMs. The Centre has sought Rs 469 crore from seven electric two-wheeler makers, including Hero Electric and Okinawa for claiming incentives while not complying with the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme norms. "This is about the subsidies your department has claimed back from OEMs on retrospective basis: And this also holds for the Rs 1,200 crores that the OEMs claim remains un-reimbursed," Society of Manufacturers of Electric Vehicles (SMEV) Chief Evangelist Sanjay Kaul said in the letter. SMEV has ..

Govt reduces price of subsidised tomato to Rs 70 from Rs 80 per kg

The Union government has reduced prices of subsidised tomatoes to Rs 70 per kilogramme from Thursday from Rs 80 per kg now to provide relief to common man from high retail prices. The Centre is selling tomatoes to people at a subsidised rate of Rs 80 a kg in Delhi-NCR and some other key cities through the National Cooperative Consumers' Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED). The all-India average retail prices of tomatoes is ruling at nearly 120 per kg, although the key kitchen item is selling as high as Rs 245 per kg at some places. In the national capital, the rate has come down to Rs 120 per kg. "The Department of Consumer Affairs has directed NCCF and NAFED to sell tomatoes at retail price of Rs 70 per kg rate from July 20, 2023 in view of the declining trend in tomato prices," an official statement said. The tomatoes procured by NCCF and NAFED had been retailed, initially, at Rs 90 per kg and then reduced to

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Govt prepares new multibillion-dollar battery subsidy scheme: Report

The draft proposal for a production-linked incentive subsidy scheme would offer Rs 21,600 crore ($2.63 billion) from this year through to 2030 for companies

Late push to extend coal subsidies upsets EU deal on energy reforms

The proposed reform aims to make power prices more stable and predictable, by putting new state-backed renewables and low-carbon nuclear plants onto fixed-price contracts for difference

India is committed to Indian Ocean nations' well being: EAM Jaishankar

Initiatives taken by the textiles ministry has led to registering of case by the CBI against six officials of the office of Textile Commissioner, Navi Mumbai relating to fraudulent claim of subsidy, a senior government official said. Textiles Minister Piyush Goyal gave its approval for detailed CBI investigation into the case following the "zero tolerance policy" against corruption. The CBI, according to the reports, has registered a case against the six officials and six Bhiwandi-based suppliers for allegedly claiming subsidies worth about Rs 6.5 crore in a fradulent manner. The subsidies were meant for power-loom sector for modernisation. The accused had used fake stamp papers to claim these subsidies. "The ministry had informed the CBI about the irregularities observed in the implementation of in-situ upgradation scheme for plain power looms by Textile Commissioner," the official added. Under the subsidy scheme under which power looms were given financial assistance for in-situ

Waiting to resolve subsidy deadlock, recover Rs 500 cr: Hero Electric CEO

Hero Electric said that they are awaiting communication from the Ministry of Heavy Industries towards quickly resolving the subsidy deadlock, which could be the first step to help the EV company

Discoms to submit report on electricity subsidy to Centre every quarter

The draft rules suggest penalties to be levied on discoms for faulty subsidy accounting, raising erroneous subsidy bills

KFL posts Rs 621 cr sales turnover, passes Rs 42 cr as subsidy to farmers

The state-run Kerala Feeds Limited (KFL) on Monday said it has posted impressive results in 2022-23 with its total sales turnover going up to Rs 621 crore from Rs 577 crore the previous year. In a release, KFL, a State Public Sector Undertaking, said it has played a vital role in the growth of the animal husbandry sector in Kerala during the period by ensuring an adequate supply of high-quality cattle, poultry, and rabbit feeds at affordable prices to farmers. The company claimed that its products like Kerala Feeds Midukki, Kerala Feeds Elite, Dairy Rich Plus, Karamine Mineral Mixture and Milk Booster were well accepted in the market. Even as the price of raw material kept soaring, KFL made available to farmers high-quality cattle feed at subsidised rates. The company passed on benefits worth Rs 42 crore by way of subsidies during the year, the release said. Significantly, 80 per cent of the company's revenue was netted through the sale of its products in the open market and the .

Subsidy coverage to areca crop to be extended: Karnataka CM Bommai

Bommai inaugurated and laid the foundation stone of various development works in Holalkere

Rajasthan government's Irrigation subsidy scheme a hit with farmers

Agriculture commissioner Kanaram said that in the last four years, over 282,290 farmers have received subsidies of Rs 736.18 crore

India aims for $17 bn cut in food, fertiliser subsidies in 2023-24: Report

The government expects to budget around Rs 2.3 trillion for food subsidies in the coming fiscal year, compared with Rs 2.7 trillion for the current year to March 31

IFFCO to soon launch nano DAP at Rs 600/bottle of 500 ml; sees huge savings

After introducing nano liquid urea, cooperative IFFCO aims to launch nano DAP fertiliser in the market soon at Rs 600 per 500 ml bottle -- a move that will help India save foreign exchange and also reduce government subsidy significantly. IFFCO is also planning to launch nano-potash, nano-zinc and nano-copper fertilisers, its Managing Director U S Awasthi said while addressing an agriculture conference organised by digital media platform Rural Voice. In June 2021, cooperative IFFCO launched nano urea in liquid form as an alternative to conventional urea. It has also set up manufacturing plants to produce nano urea. Awasthi said IFFCO has produced 5 crore bottles of nano urea so far, out of which 4.85 crore bottles have already been sold. He highlighted that the price of nano urea is less than conventional urea and it is also more effective and convenient. There is no government subsidy on nano urea and it is being sold at Rs 240 per bottle. For conventional urea, the government ...

US, EU agree to intensify talks to resolve 'green subsidies' dispute

The United States and European Union agreed Monday to intensify talks to resolve EU concerns over major subsidies for American companies contained in a US clean energy law. Although no deal was reached at a meeting of the bilateral Trade and Technology Council, the two sides pledged to continue work on preliminary progress and said they would push for a solution that benefits both US and European firms, workers and consumers as well as the climate. We acknowledge the EU's concerns and underline our commitment to address them constructively, the two sides said in a joint statement after the meeting at the University of Maryland in College Park, located just outside Washington. We underline the TTC's role in achieving this and in supporting a successful and mutually supportive green transition with strong, secure, and diverse supply chains that benefit businesses, workers, and consumers on both sides of the Atlantic, it said. The dispute revolves around the US Inflation Reduction Act

Centre steps up audit of EV firms taking subsidies after complaints: Report

The Indian government will stop its electric vehicle subsidy scheme for companies against which complaints have been received, CNBC TV 18 reported on Wednesday, citing sources.

30% consumers yet to apply for monthly electricity subsidy: Delhi govt

Nearly 30 per cent of the electricity consumers and subsidy beneficiaries are yet to apply for the power subsidy even as the last date of application, October 31, inches closer, government officials said on Friday. According to officials, over 33 lakh electricity consumers have so far applied for the power subsidy in the national capital. Delhi Chief Minister Arvind Kejriwal had last month announced October 31 as the deadline to apply for power subsidy for the month. He had said that those who do not apply for the subsidy will have to pay their non-subsidised bills but can apply next month. There are 58 lakh domestic power consumers in Delhi, of whom 47 lakh avail the subsidy. Officials said that 33,14,488 lakh electricity consumers have applied for power subsidy, while the remaining 13.85 lakh consumers are yet to do it. This means that around 29.47 per cent of the electricity consumers availing subsidy, are yet to apply for it. The last date is October 31, a government official

Govt starts works on sale of 4 Air India subsidiaries it retained

Ground-handling arm would be monetised first; investor roadshows for all companies organised