Three electric vehicle makers, namely Hero Electric, Okinawa, and Benling India, have been reported to have not returned the benefits they wrongly claimed under the government’s flagship FAME-II scheme. As a consequence, officials have stated that these companies may face blacklisting from all central schemes. During the year 2022, the Ministry of Heavy Industries received complaints about several original equipment manufacturers (OEMs) registered under the FAME-II scheme. The complaints alleged that these manufacturers were not complying with the FAME-II guidelines. Specifically, they were accused of selling electric vehicles in violation of the local sourcing requirements and excessively importing vehicle parts.The ministry conducted an investigation on 13 companies. Out of these, six companies were found to be in violation of the Faster Adoption of Manufacturing of Electric Vehicles (FAME-II) norms. The companies found violating the norms include Hero Electric, Okinawa Autotech, Benling India Energy and Technology, AMO Mobility, Greaves Electric Mobility, and Revolt Motors.
AMO Mobility, Greaves Electric Mobility, and Revolt Motors returned the subsidy amount along with interest within a few months. They received a clean chit from the government.
However, Hero Electric, Okinawa Autotech, and Benling India did not return the incentives. As a result, they were de-registered from the FAME-II scheme.
Hero Electric, Okinawa Autotech, and Benling India were removed from the registration. Following that, the next action is the exclusion from all Ministry schemes, which has been implemented for Hero Electric and Benling India. Okinawa was not excluded because they were in court during that period.
“The next step is blacklisting from all schemes under the Government of India. That has not happened so far because it is a step-by-step process and the Ministry of Finance gives the approval for debarment from all the ministries’ schemes/policies for any company,” a senior official told PTI.
Separate emails were sent to each of the three companies to request comments, but there was no immediate response.
The official mentioned that AMO Mobility, Greaves Electric Mobility, and Revolt Motors have been cleared in FAME-II. However, they are not being enrolled in the Electric Mobility Promotion Scheme (EMPS) 2024.
“The process of making them (the three companies who got a clean chit) eligible for future schemes is on. The ministry appointed a committee. The committee has made some findings. Since this matter is sub-judice and in court, we cannot divulge details,” he said.
The Ministry of Heavy Industries (MHI) in India initiated the Electric Mobility Promotion Scheme (EMPS) in March 2024. The scheme aims to increase the usage of electric two-wheeler and three-wheeler vehicles for commercial use and offer the essential assistance for the development and production of EVs in India.
The EMPS-2024 will be implemented for a duration of four months, starting from April 2024 and ending in July 2024. The program has a budget of INR 500 crore and offers subsidies to electric vehicles. Subsidies will be given up to INR 10,000 for every electric two-wheeler, up to INR 25,000 for each small electric three-wheeler, and up to INR 50,000 for each large three-wheeler.
The MHI will reimburse the subsidies or demand incentives to the EV manufacturers when a vehicle is sold. This benefit will also be passed on to the consumers, as the subsidy amount will be deducted from the final invoice price, thereby reducing the purchase price of the EVs.
