FAME-II sops of two EV makers on hold; government seeks localization proof
“After examination of reports in respect of two OEMs, the models of these two OEMs have been suspended from the FAME (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles) scheme,” minister of state for heavy industries Krishan Pal Gurjar said in a written response to a question raised in the Lok Sabha.
According to Krishan Pal Gurjar, minister of state for heavy industries, the government has halted the processing of two electric vehicles (EV) makers’ pending FAME-II subsidy claims until these companies submit sufficient proof to demonstrate compliance with the scheme’s terms.
“After examination of reports in respect of two OEMs, the models of these two OEMs have been suspended from the FAME (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles) scheme,” Gurjar stated in a written response to a Lok Sabha question regarding whether subsidies had been suspended due to complaints about EV manufacturers failing to meet localization standards.
“Further, the processing of their pending claims has been stopped till they submit sufficient evidence to show their compliance to phased manufacturing plan (PMP) timelines,” he said.
The government has issued letters to EV manufacturers Hero Electric and Okinawa for failing to meet the standards for obtaining subsidies under FAME-II.
According to the FAME website, models from these businesses are not eligible for the subsidy.
Gurjar stated that the MHI has received complaints about subsidy theft due to violations of localization standards.
Both Hero Electric and Okinawa have been accused of mostly using foreign components in their vehicles and passing them off as locally sourced to collect the subsidy.
The corporations are likely to sue the government in court, claiming that some of the components are not available in India.
Recently, charges have surfaced against companies such as Ather Energy, Ola Electric, TVS Motors, and Hero MotoCorp for underpricing their vehicles to qualify for the FAME-II subsidy.
According to Gurjar, all complaint instances have been forwarded to testing agencies for re-verification.
The government had set a target of selling one million electric two-wheelers, 500,000 e-three-wheelers, 55,000 four-wheelers, and 7,000 electric buses through the FAME-II scheme during five years beginning in April 2019.
Gurjar was asked if the government was aware of the delay in fulfilling the FAME-II scheme’s aim and what the government’s strategy was to speed up the process and achieve the deadline. He stated that as of February 15, 792,529 e-two wheelers, 81,172 e-three wheelers, 6,831 e-four wheelers, and 2,435 e-busses had been sold through FAME-II.
The concerns about meeting the scheme’s aim emerge as the government considers not extending the scheme beyond March 2024.
Three-wheeled EV manufacturers are requesting a 50% increase in their subsidy amount because e-three-wheeler sales under the scheme have fallen far short of the government’s aim.
Gurjar also stated that the ministry has approved the installation of 2,877 electric vehicle charging stations in 68 cities across 25 states and union territories. In addition, 1,576 charging stations on nine motorways and 16 motorways have been approved under FAME-II.
Join All India EV Community on LinkedIn
Content Credit:Et Auto
