The government has sought ₹469 billion from seven electric two- or three-wheeler manufacturers, including Hero Electric, Okinawa, Ampere and Revolt, which are claiming incentives despite not complying with the rules of the FAME II scheme.
As per reports, Hero Electric has the highest demand at ₹ 133.48, followed by Ampere at ₹ 124.91 and Okinawa at ₹ 116.85.
If the amount is not returned to the government, they will be removed from the scheme within the next 7-10 days and the government will not allow them to participate in the scheme, the sources said, adding that an investigation by the Ministry of Heavy Industries (MHI) revealed that these companies were availing tax benefits under the scheme in violation of the norms.
“As per the rules of the scheme, incentives were allowed for manufacturing electric vehicles using components made in India. But the investigation discovered that these seven companies were using imported components,” said an official from MHI. Lohia Auto Industries, which demanded a minimum amount (among all) of ₹ 11 lakh, said the company had not received any notice or information from the government in this regard.
Ayush Lohia, CEO of Lohia Auto. said that they are highlighting that they have not received any information or notice from the ministry or the concerned authority regarding withdrawal of subsidies.
The FAME-II scheme was announced in 2019 to promote electric and hybrid vehicles under ₹10,000 scheme. This is an expanded version of the existing FAME India I (Faster Adoption and Production of Hybrid and Electric Vehicles) scheme, launched on April 1, 2015, with a total cost of ₹ 895 crore.
