EV makers who paid FAME penalties can claim subsidies again
The Indian government has resumed providing subsidies to EV makers, who have settled penalties imposed for breaching the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India) scheme. This move comes after Revolt Motors and Greaves Electric Mobility, applied for subsidy under the ongoing Electric Mobility Promotion Scheme (EMPS), 2024. Previously, six EV sellers were issued recovery notices totaling ₹469 crore for violating FAME rules. Among them, Revolt, Greaves, and Amo Mobility repaid approximately ₹170 crore.
Compliance with stricter localisation rules
A high-ranking government official confirmed to ET, that both Revolt Motors and Greaves Electric Mobility have pledged to adhere to the more stringent localisation regulations under EMPS. This commitment is expected to result in approvals for subsidies on future sales, potentially allowing these companies to offer their electric two-wheelers at more competitive prices.
EV manufacturers repay penalties
Among the six firms that were penalized, Revolt, Amo Mobility, and Greaves have repaid around ₹170 crore. However, Hero Electric, Okinawa Autotech, and Benling India have challenged these charges in court. In May 2024, it was reported that the government might restore financial aid to those firms that returned any improperly claimed FAME subsidies with penalty interest.
Revolt Motors announces subsidy eligibility under EMPS
In July, Revolt Motors declared that its vehicles would qualify for a subsidy of up to ₹10,000 per unit under EMPS. The Ministry of Heavy Industries brought EMPS in March 2024, with an initial allocation of ₹500 crore to subsidize 3.72 lakh electric two- and three-wheelers. This budget was later increased in July, to support 5.61 lakh EVs with a ₹778 crore allocation.
EMPS subsidy claims and approvals
Official figures show that claims amounting to ₹147.32 crore have been made against sales of 1.01 lakh EVs, under EMPS for sales made from April 1 onward. EV makers including Hero MotoCorp, Bajaj, TVS, Ather, and Ola have already received approvals to sell two-wheelers and claim EMPS subsidy. The first FAME scheme was launched in 2015 with a budget of ₹895 crore while its expanded version, FAME II, was started in 2019 with an outlay of ₹10,000 crore.
