EV makers like Hero Electric, Okinawa ordered to refund FAME II rewards

Top electric two-wheeler manufacturers have received a deadline to return their FAME II incentives.The center has asked these EV makers to return the value $4.69 billion rupees. As many as seven manufacturers of electric two-wheelers, including Hero Electric and Okinawa Autotech, have been ordered to return incentive payments for non-compliance with FAME II program specifications. EV makers have about 10 days to refund the amount or face disqualification from the program in the future.

go through: HT car desk
| Updated on: July 25, 2023 at 09:56

The Hero Electric Optima and NYX electric scooters are produced at Mahindra’s Pithampur factory. The electric car maker is under investigation for alleged misappropriation of FAME II subsidy incentives.

Previously, the Ministry of Heavy Industry had filed investigations against 12 electric vehicle manufacturers for suspected misappropriation of subsidy funds. $10,000 crore FAME scheme. The investigation revealed that these electric two-wheeler manufacturers took advantage of the program by violating the program’s specifications. The FAME II scheme, aimed at boosting electric vehicle sales in India, is aimed at EV manufacturers using locally manufactured EV components.

Of the 12 manufacturers surveyed, seven EV makers were found to have violated the probe’s norms. ‚ÄúDuring our investigation, six companies were found to be clean, but seven companies were found to be in violation. So we are looking $4.69 billion rupees. They must return the money to the government. news agency PTI quoted the official as saying.

Aside from Hero Electric and Okinawa Autotech, other electric vehicle manufacturers under the scan include Ampere EV, Revolt Motors, Benling India, Amo Mobility and Lohia Auto.

In response to this development, Hero Electric denied that it would have an impact on the manufacturer. A spokesman for Hero Electric was quoted by PTI as saying: “This notice is for a period when we have no reason not to comply. It is not about Hero Electric.” any information or notice.” Electric vehicle makers such as Okinawa Autotech and Revolt Motors have yet to make any official statements on the matter.

Launched in 2019, the FAME-II subsidy program aims to support the electrification of public and shared transport by subsidizing 1 million electric two-wheelers, 500,000 electric three-wheelers, 55,000 electric four-wheelers, passenger cars and 7,090 electric buses. In May this year, the Center approved the Ministry of Heavy Industry’s proposal to reduce subsidies under the FAME II program for electric two-wheelers purchased on and after June 1. Customers can only get 15 percent of the total cost of the electric two-wheeler as a subsidy, according to a notice issued by the ministry.

First published date: Jul 25, 2023 09:56 AM EST


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