Technology7 electric two-wheeler companies including Hero, Okinawa accused of subsidy irregularities

7 electric two-wheeler companies including Hero, Okinawa accused of subsidy irregularities

The central government is considering taking action against seven electric two-wheeler makers for claiming incentives and not following the norms of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme. The government has asked these companies to pay Rs 469 crore. This amount was given as incentive.

These companies include Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility and Lohia Auto. A government official said that notices have been sent to these companies. Of these, only Revolt Motors has offered to return the incentives. This official said that the deadline for this has almost ended and the government can take a decision next week. “We are considering legal options,” he said. Investigation by the Heavy Industries Ministry had revealed that these companies had taken incentives under the FAME II scheme in violation of the norms.

Under the norms of this scheme, incentives were allowed for manufacturing electric vehicles using components made in the country. The ministry’s investigation found that these seven companies had used imported components. It was alleged in an anonymous email against these companies that they are taking subsidy without following the Phased Manufacturing Plan (PMP) rules. Recently the government had decided to reduce the FAME 2 subsidy for electric two-wheelers. After this the prices of electric two-wheelers had increased.

Under the FAME 2 scheme, the subsidy for electric two-wheelers has been reduced from Rs 15,000 per kWh to Rs 10,000 per kWh. Additionally, the maximum subsidy under the revised FAME 2 scheme has been capped at 15 percent of the ex-factory price of electric two-wheelers eligible for it. In the last financial year, 7,79,000 high-speed electric two-wheelers were sold in the country, for which FAME 2 subsidy was given. Ola Electric is the largest company in this segment. Its market share has increased to about 40 percent. In this year’s Economic Survey, it was said that the market for electric vehicles can increase to one crore units annually by 2030.

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