New Delhi: The Modi government at the Center has ordered seven electric two-wheeler companies, including Hero Electric and Okinawa, to refund Rs 469 crore for claiming incentives under the FEM-II scheme despite non-compliance. A government official on Monday said that if the amount is not paid, all these companies will be removed from the FEM-II project within seven to 10 days. Also, they will not be allowed to participate in this incentive scheme. The government has launched the FAME-2 project to manufacture and sell electric vehicles at the domestic level.
Fame Scheme is running since 2019
The government started the FAME-2 scheme from 2019 to promote faster adoption and production of electric vehicles. An incentive amount of Rs 10,000 crore has been allocated for this. According to the official, seven companies claiming incentives under the scheme have been found guilty of violating the prescribed provisions.
Six companies have been found guilty
Investigations by the Ministry of Heavy Industries have found that these companies have taken incentives in violation of the prescribed standards. The convicted companies are Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility and Lohia Auto.
Six institutions have been acquitted
The official said, “While six companies were acquitted in our investigation, seven companies were found guilty of violating standards.” We are demanding Rs 469 crore from them. This money should be returned to their government. The government was accused of installing imported equipment instead of domestically made equipment in its EV products. An investigation was conducted on the basis of this complaint. The official said that two of the seven companies have agreed to return the incentive money with interest.
Any defect in the consent of the company: Hero Electric
However, when contacted, a Hero Electric spokesperson said the company had not committed any lapses in compliance during the period for which the notice was issued. Hence this notice is not relevant for the company. At the same time, Lohia Auto Chief Executive Officer (CEO) Ayush Lohia said that we would like to say that we have not received any information or notification from any department of the government regarding subsidy refund. Okinawa Autotech and Revolt Motors declined to comment.
What is reputation-2 scheme?
To promote the manufacture and sale of electric vehicles in India, the FEM-II scheme was launched by the Modi government at the Center in 2019. Under this scheme of the government, consumers are subsidized on purchase of electric vehicles. Initially the scheme was implemented on 31 March 2022, but later the government extended the last date of the scheme to 31 March 2024.
Benefits of FAME-2 project
Under the government’s FAME-2 scheme, more than 50 percent incentive is given on electric two-wheelers. This incentive amount is also given for the manufacture of electric two-wheelers. The government offers a subsidy of Rs 15,000 per kWh or up to 40 per cent of the vehicle’s battery capacity cost as a new incentive for two-wheelers. Under the FEM-II scheme, not only the central government but also the state governments are providing benefits.
What is the government’s goal?
The central government has set a target of making 30 percent of all passenger vehicles electric by 2030, including an ambitious plan to make 80 percent of all two-wheelers electric scooters and bikes by 2030. Efforts are being made on all fronts, from manufacturing to charging infrastructure, to realize a future with low carbon emissions and less dependence on fossil fuels. A large portion of the electric scooters available have been excluded from the subsidy under the FAME-II scheme.
