Government to Restore Financial Support to Selected Electric Two-Wheeler Manufacturers
The Indian government may reinstate financial support to electric two-wheeler manufacturers such as Revolt Motors, Greaves Electric Mobility, and Amo Mobility under the Electric Mobility Promotion Scheme 2024 (EMPS 2024).
However, other manufacturers like Hero Electric, Okinawa Autotech, and Benling India might be excluded from all future government schemes, according to an official statement. This decision follows the return of wrongfully claimed subsidies by Revolt, Greaves, and Amo, whereas Hero, Okinawa, and Benling have yet to comply and have instead pursued legal action against the government.
An initial investigation into violations of vehicle localization norms under the Faster Adoption & Manufacturing of Electric Vehicles in India (FAME India) scheme led to the government issuing notices to recover ₹469 crore in subsidies distributed between 2020 and 2023. Hero, Okinawa, and Benling have contested these recovery notices.
“The process is underway to blacklist these errant companies from all government schemes. They have already been debarred from all schemes under the Ministry of Heavy Industries (MHI),” the official stated.
“We have filed a writ petition in the Delhi High Court to recover our outstanding FAME II dues of upwards of INR 425 crore, and our case is subjudice. Okinawa Autotech has always complied with the scheme guidelines, as observed by MHI’s committee headed by Joint Secretary Mukta Shekhar.”
A spokesperson for Okinawa mentioned.
Okinawa also stated that they have not availed incentives since the beginning of the last financial year and believe the electric two-wheeler industry is now self-sufficient.
However, MHI officials have noted that the report by Joint Secretary Mukta Shekhar has not been accepted by the Centre, prompting a fresh probe into the FAME scheme.
Hero Electric and Benling India also refrained from commenting on the ongoing legal matters, citing the subjudice status of their cases.
Regarding the restoration of subsidy benefits to certain manufacturers, the official indicated that the heavy industries ministry is awaiting approval from the finance ministry.
“The process to reintegrate these companies under the subsidy scheme is underway,” the official added, noting that Revolt, Greaves, and Amo Mobility have collectively repaid around INR 170 crore to the government.
The FAME scheme, launched in 2015 with a budget of ₹895 crore and expanded in 2019 with an outlay of INR 10,000 crore under FAME II, aimed to support the sale of locally produced electric vehicles (EVs). Subsidies were linked to a phased manufacturing program (PMP) designed to progressively increase localization levels.
However, several companies reportedly did not adhere to the PMP, undermining the scheme’s objectives. Despite these challenges, FAME II supported the sales of nearly 1.4 million electric two-wheelers, 161,000 electric three-wheelers, and 20,556 electric four-wheelers.
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