Fame-2 rule violation: action on seven two wheeler companies including Hero Electric, will have to return Rs 469 crore

New Delhi : The Modi government at the Center has directed seven electric two wheeler companies, including Hero Electric and Okinawa, to return Rs 469 crore for claiming incentives despite non-compliance of rules under the Fame-II scheme. A government official said on Monday that in case of non-payment of this amount, all these companies will be removed from the Fame-2 scheme in seven to 10 days. Apart from this, they will also not be allowed to participate in this incentive scheme. The government has started the FAME-2 scheme for the manufacture and sale of electric vehicles at the domestic level.

Fame scheme running since 2019

The government has started the FAME-2 scheme from the year 2019 to promote the quick application and manufacturing of electric vehicles. An incentive amount of Rs 10,000 crore has been allocated for this. According to the official, seven companies claiming incentives under this scheme have been found guilty of violating the prescribed provisions.

Six companies found guilty

In the investigation of the Ministry of Heavy Industries, it has been found that these companies have taken incentives in violation of the prescribed standards. The names of the companies found guilty are Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility and Lohia Auto.

Six companies acquitted

The official said that in our investigation, six companies were acquitted, but seven companies were found guilty of violating the standards. We are demanding Rs 469 crore from them. They will have to return this amount to the government. The government had received complaints about installing imported equipment in its EV products instead of domestically manufactured equipment. The investigation was done on the basis of this complaint. The official said that two out of seven companies have agreed to return the incentive amount with interest.

Any lapse in company’s compliance: Hero Electric

However, when contacted, a Hero Electric spokesperson said that the company had not committed any lapse in compliance during the period for which this notice has been issued. Therefore, this notice is not relevant to the company. At the same time, Chief Executive Officer (CEO) of Lohia Auto, Ayush Lohia said that we want to say that we have not received any information or notice from any department of the government regarding the return of subsidy. Okinawa Autotech and Revolt Motors declined to comment on the matter.

what is fame-2 scheme

To promote the manufacture and sale of electric vehicles in India, the Fame-2 scheme was launched in the year 2019 by the Modi government at the Center. Under this scheme of the government, subsidy is given to the customers on the purchase of electric vehicles. Initially this scheme was implemented on 31 March 2022, but later the government has extended the last date of this scheme to 31 March 2024.

Benefits of FAME-2 scheme

Under the government’s FAME-2 scheme, more than 50 percent incentive amount is provided on electric two wheelers. This incentive amount is also given on the manufacture of electric two-wheelers. The government provides a subsidy of Rs 15,000 per kWh or up to 40 per cent of the battery capacity cost of the vehicle as new incentives for two wheelers. Under the Fame-2 scheme, benefits are being provided not only by the Central Government but also by the State Governments.

what is government target

The central government has set a target of making 30 per cent of all passenger vehicles electric vehicles by 2030, which includes an ambitious plan to make 80 per cent of all two-wheelers electric scooters and bikes by 2030. Efforts are being made on all fronts from manufacturing to charging infrastructure to realize a future with low carbon emissions and less dependence on fossil fuels. A large section of the available electric scooters have been excluded from the subsidy of the FAME-II scheme.