“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 said in a written response to a question raised in the Lok Sabha about whether subsidies have been put on hold following complaints about EV makers not complying with the localisation norms.
“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.
ET had on October 7, 2022, reported that EV makers Hero Electric and Okinawa have been served notices by the government for not complying with requirements for claiming subsidy under FAME-II.
According to the FAME website, models of these companies have been excluded from availing of the subsidy.
Gurjar said the MHI has received complaints regarding misappropriation of subsidies related to the violation of the localisation norms.
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Both Hero Electric and Okinawa have been accused of largely using imported components in their vehicles that they allegedly passed off as locally sourced to claim the subsidy.ET had reported on March 13 that the companies are likely to legally challenge the government in the courts as they argue that some of the components are not available in India.
Recently, allegations have also emerged against companies like Ather Energy, Ola Electric, TVS Motors and Hero MotoCorp for mispricing their vehicles below Rs 1,50,000 to avail of the FAME-II subsidy.
Gurjar said all the complaint cases have been referred to the testing agencies for reverification.
Through the FAME-II scheme, 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 subsidy scheme in five years commencing April 2019.
Gurjar was asked if the government was aware of the delay in meeting the FAME-II scheme’s target and what the government’s strategy was to expedite the process and complete the set target in a timely manner.
He said 792,529 e-two wheelers, 81,172 e-three wheelers, 6,831 e-four wheelers, and 2,435 e-busses have been sold through FAME-II as on February 15.
The questions about achieving the scheme’s target comes at a time when the government is considering not extending the scheme beyond March 2024, which ET reported on March 7.
ET also reported on March 20 that three-wheeler EV makers are seeking a 50% increase in their subsidy amount as e-three wheelers sales under the scheme are way below the government target.
Gurjar also said the ministry has sanctioned 2,877 electric vehicle charging stations in 68 cities across 25 states and union territories. Further, 1,576 charging stations across nine expressways and 16 highways under FAME-II have also been sanctioned.