The Government has sought ₹469 crore from seven electric two/three-wheeler makers including Hero Electric, Okinawa, Ampere and Revolt, for claiming incentives while not complying with the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme norms.
Sources told businessline that Hero Electric has the highest claim of ₹133.48 crore, followed by Ampere at ₹124.91 crore and Okinawa at ₹116.85 crore.
In case of non-refund of the amount to the government, they will be de-registered from the scheme in the next 7-10 days and the government would not allow them to participate in the scheme, sources said adding that an investigation by the Ministry of Heavy Industries (MHI) has revealed that these companies have availed fiscal incentives under the scheme by violating the norms.
“As per the rules of the Scheme, incentives were allowed to make EVs by using made in India components. But, in the investigation, it was found that these seven firms have used imported components,” said an official at MHI.
Lohia Auto Industries, which had claimed the minimum amount (amongst all) of ₹11 lakh, said that the company has not received any notice or information from the government on the same.
“We want to emphatically state that we have not received any information or notice from the government department or concerned authority regarding the reversal of subsidies,” Ayush Lohia, Chief Executive Officer, Lohia Auto said.
The FAME-II scheme was announced in 2019 to promote electric and hybrid vehicles with a ₹10,000-crore programme. It is the expanded version of the present scheme FAME India I (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles, which was launched on April 1, 2015, with a total outlay of ₹895 crore.