Hero Electric, Okinawa under scanner for misappropriation of FAME subsidies

The government is probing 12 automakers including electric two-wheelers such as Hero Electric and Okinawa Autotech for alleged misappropriation of subsidies under the ₹10,000 crore FAME scheme, Union Heavy Industries Minister Mahendra Nath Pandey informed Parliament. The complaints mainly relate to violation of Phased Manufacturing Programme (PMP) guidelines under FAME India Scheme Phase-II.

Other Original Equipment Manufacturers (OEMs) against whom complaints have been received include Benling India Energy and Technology, Okaya EV, Revolt Intellicorp, Kinetic Green Energy & Power Solutions, Jitendra New EV Tech, Greaves Electric Mobility, Avon Cycles, Lohia Auto Industries, Thukral Electric Bikes and Victory Electric Vehicles International.

All the complaint cases have been referred to the testing agencies for re-verification. After examination of reports were done in respect of two OEMs, the models of these two OEMs have been suspended from the FAME scheme, the minister said. "Further, the processing of their pending claims has been stopped till they submit sufficient evidence to show their compliance to PMP timelines," the minister informed the Lok Sabha in a reply.

The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme has been implemented in India in Phase II to promote adoption of electric/hybrid vehicles in the country. At present, Phase-II of FAME India Scheme is being implemented for a period of five years, from 1 April, 2019 with a total budgetary support of ₹10,000 crore. Under the scheme, demand incentive/ subsidy is given to consumers in the form of an upfront reduced purchase price.

Through this, the government plans to support electrification of public and shared transportation through subsidies for 10 lakh electric two-wheelers, five lakh electric three-wheelers, 55,000 electric four-wheelers, passenger cars, and 7,090 electric buses.

As on December 9, 2022, 64 electric vehicle OEMs have been registered and 7.47 lakh EVs under FAME India Phase II have been sold, the minister further informed the parliament.

(With inputs from agencies)

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