Government panel accuses EV manufacturers of intentional subsidy scheme violation
What's the story
A panel established by the Union Ministry of Heavy Industries (MHI), has accused auto companies of intentionally violating the FAME-2 guidelines. The panel's findings, submitted in May 2024, contradict a previous investigation undertaken by a Joint Secretary at MHI. This comes after MHI instructed 13 electric vehicle makers to reimburse improperly claimed subsidies under the above-mentioned scheme.
Major violators
Six leading brands found violating rules
Six EV brands, including Hero Electric, Okinawa Autotech, Revolt Intellicorp, Ampere Vehicles, Benling India, and Amo Mobility were found using imported products, and seeking subsidy benefits in violation of phased manufacturing guidelines. The panel's investigation revealed that these companies intentionally violated the scheme's guidelines.
Scheme clarity
Panel asserts clarity of FAME 2 scheme guidelines
The panel's report, after scrutinizing all notifications as well as guidelines, concluded that the scheme notification and guidelines were clear, and well understood by all stakeholders, including test agencies, OEMs, and MHI. The panel also stated that timelines for localization were framed in due consultation with all industry stakeholders. This contradicts an earlier investigation suggesting some important terms in the FAME scheme were not clearly defined.
Investigation timeline
MHI launched investigation into subsidy violation in 2023
The Ministry of Heavy Industries (MHI) initiated an investigation into instances of subsidy violation under the FAME scheme in April 2023. The probe was aimed at identifying procedural lapses and the role played by government officials, that resulted in subsidy funds being improperly disbursed to EV manufacturers. This investigation led to the formation of the high-level panel that found auto companies intentionally violated FAME-2 guidelines.