Govt steps to recover INR 249 cr from Okinawa and Hero Electric for violating FAME norms – EQ Mag
The government’s probe found that both firms breached the localisation program they had committed to, prompting the government to initiate the recovery process
The Indian government is expected to issue recovery notices to Hero Electric and Okinawa, two electric two-wheeler companies, after a probe found they had violated provisions of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) II scheme. The recovery notices will seek to recover the subsidy amount disbursed under the scheme.
The government’s probe found that both firms breached the localisation program they had committed to, prompting the government to initiate the recovery process, sources told Economic Times.
However, both companies, Hero Electric and Okinawa, have denied violating the provisions of the FAME II scheme.
A Hero Electric spokesperson responding to the allegations said in a statement, “This is not true; the company hasn’t got any information on this. In fact, Hero Electric along with 13 other OEMs are in discussions on reimbursement of subsidy already passed on to customers for the last 16 months and also continuation of subsidy beyond FAME II so as to bring down the ‘on-road price’ of electric two-wheelers, and we hope for an early resolution.”
Last year, a probe was launched into the implementation of the Rs 10,000-crore FAME II scheme following allegations of falsified localization claims and incorrect subsidy claims by 12 electric two-wheeler makers. Consequently, payments to these companies were stopped, which came as a shock to the original equipment manufacturers (OEMs) as the FAME II scheme helped them sell electric vehicles at reduced prices.
The FAME II scheme’s subsidy was intended to incentivise EV manufacturers to use more domestically produced parts and decrease their dependence on imports. To meet this, OEMs committed to a phased manufacturing program (PMP) and linked subsidy disbursals to it.
Source: PTI
