Centre probes "misappropriation" of incentives by EV makers in India
Mahendra Nath Pandey, Minister for Heavy Industries, has informed the parliament that the government will be investigating possible misappropriation of incentives given to electric vehicle (EV) makers in India. After the initial investigation, complaints were made against 12 companies for violating certain guidelines listed under the FAME program that was launched to promote faster adoption of EVs on our shores.
Why does this story matter?
- India has become one of the largest hubs in the world in recent years when it comes to manufacturing Battery Electric Vehicles (BEVs). Both central and state governments have also been promoting every automaker to 'go electric' for a sustainable future.
- An incentive program was created for the promotion of EV adoption in India. However, an issue of misappropriation has now surfaced.
What is the FAME program?
The Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) program was initiated in 2019 by the Centre to promote the rapid development of EVs and infrastructure in the country. The aim was to grow the total sales of EVs to 30% by 2023. To achieve this, the government subsidized EV and hybrid automakers and made them lower the prices of vehicles.
Certain EV makers have violated guidelines of the incentive program
According to the initial reports and complaints, 12 EV makers have violated the regulations set for the FAME program in India. The list includes names such as Hero Electric, Okinawa, Benling India, Okaya, Greaves Electric Mobility, Revolt Motors, Kinetic Green, Avon Cycles, Lohia Auto Industries, Thukral Electric Bikes, and Victory Electric Vehicles. Two electric vehicle makers have also been suspended from the scheme.ð
Incentive worth Rs. 10,000 crores were provided by the Centre
According to Pandey, incentives worth Rs. 10,000 crore were provided by the Centre under the FAME program. However, certain EV makers seem to have broken certain regulations to benefit from the scheme provided for the development of vehicles and infrastructure.
