Greaves Electric pays Rs 125 crore for flouting FAME-II subsidy norms
Greaves Electric Mobility (formerly Ampere Electric Vehicles) said it has refunded around Rs 124 crore subsidy it received under the Rs 10,000 crore Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-II) scheme.
“In light of our commitment to consumer interests, to avoid protracted litigation, and without admitting to any of the allegations, contentions, or statements made in the Notice. Greaves Electric Mobility has refunded to the Ministry of Heavy Industries (MHI) the entire incentive claim of Rs 124 crore appx, along with the accrued interest, and without prejudice to our legal rights,” the company said in a public statement.
Greaves is among the seven electric two-wheelers (e2W) makers accused by the government of selling vehicles without complying with the localisation mandate.
The company has also asked the MHI to take the necessary steps to withdraw the show cause notice and to be back on the portal soon.
Greaves Electric Mobility, along with six other players — Hero Electric, Okinawa Autotech, Benling India, Revolt Intellicorp, Amo Mobility, and Lohia Auto — were found to be using imported products in violation of the phased manufacturing programme (PMP) guidelines. In April, these companies were asked to return subsidies totalling Rs 469 crore.
The government also barred these companies from submitting future claims under the scheme.
In August, RattanIndia-owned EV maker Revolt Intellicorp paid Rs 50.02 crore to the Centre as a penalty for violating the guidelines of the FAME subsidy programme that sought to promote local manufacturing and adoption of EVs.
The PMP guidelines of the flagship FAME scheme are aimed at enhancing domestic value addition. By importing products, the OEMs failed to fulfil the scheme’s purpose.
The FAME-II guidelines mandated that OEMs source 50 per cent of their raw materials from Indian manufacturers. Despite this, some OEMs continued to utilise Chinese components, thus flouting the policy.
With Greaves Electric Mobility paying back the money, the government is optimistic that the PMP violators will realign with the guidelines, nurturing a more compliant and self-sufficient electric vehicle manufacturing sector in India.
A senior government official informed Business Standard on Monday, “It’s not only Greaves Electric Mobility; we are also in discussions with other companies. In the near future, they will all take similar actions.”
However, Hero Electric, which owed approximately Rs 133 crore, had proposed a payment of Rs 8 crore while requesting a reduction in the outstanding amount. The government, however, has declined to accept any reduction in the owed sum, this paper had reported.