The government has taken a big step for the companies making electric scooters. The central government is preparing to clamp down on companies making about half a dozen electric scooters. This will include those manufacturers who wrongly claimed subsidy under the flagship FAME II (Faster Adoption and Manufacturing of Electric Vehicles) scheme.
According to reports, these include debarring these companies from availing government subsidy benefits in future and not allowing them to avail discounts on vehicles sold in the last 15 months. Apart from this, some other decisions are being considered.
Strict action on electric companies
According to a senior official, strict action will be taken against these electric wheeler companies if found guilty. These companies will be barred from taking advantage of the subsidy in future. Also, they will not be given any discount on vehicles sold in the last 15 months.
Companies violated local sourcing norms
The Center had rejected subsidy disbursal of Rs 1,400 crore under FAME II to 13 firms pending completion of inquiries by vehicle testing agencies ARAI (Automotive Research Association of India) and iCAT (International Center for Automotive Technology). They have used components imported from China in their vehicles in violation of local sourcing norms.
Government sent notice to 7 electric vehicle companies
Last month, the Government of India had sent recovery notices of Rs 500 crore to 7 electric wheeler companies. This includes the names of Hero Electric, Benling India, Lohia Auto, AMO Mobility, Okinawa Autotech, Empire EV, Revolt Motors. According to the government, these companies have violated the local sourcing norms under FAME-2 for incentives.
What is FAME II subsidy?
To promote the manufacture and use of electric vehicles in India, the Government of India has started the FAME II (Faster Adoption and Manufacturing of Electric Vehicles Phase II) subsidy. This is a low cost benefit given to the buyer of the electric vehicle.
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