Government panel finds EV manufacturers violated FAME 2 subsidy scheme
A high-level government panel, established by the Union Ministry of Heavy Industries (MHI), has discovered that auto companies intentionally violated the Faster Adoption and Manufacturing of Electric (& Hybrid) Vehicles in India (FAME-2) guidelines. The panel's findings, submitted earlier this month, contradict a previous investigation by a Joint Secretary at the MHI. This development comes after the MHI instructed 13 electric vehicle manufacturers to reimburse improperly claimed subsidies under the FAME 2 scheme.
Six major brands found guilty of subsidy violations
Six leading electric vehicle brands, including Hero Electric, Okinawa Autotech, Ampere Vehicles, Benling India, Revolt Intellicorp, and Amo Mobility were found to be using imported products and seeking subsidy benefits in violation of phased manufacturing guidelines. As a result of these violations, these Original Equipment Manufacturers (OEMs) have been asked to repay around ₹469 crore. The panel's investigation into this issue has been ongoing for some time.
Panel asserts clarity of FAME 2 scheme guidelines
A government official stated that after scrutinizing all notifications and guidelines, the panel concluded that the scheme notification and guidelines were clear and well understood by all relevant stakeholders, including test agencies, OEMs, and MHI. The panel also clarified that timelines for localization were framed in due consultation with all industry stakeholders. This statement contradicts the earlier claim of ambiguity in key terms of the FAME scheme.
