The Ministry of Heavy Industries has taken decisive actions against 17 original equipment manufacturers (OEMs) participating in the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme phase-II. The move came after receiving complaints of non-compliance from various quarters. Minister of State for Heavy Industries, Krishan Pal Gurjar, confirmed on Tuesday that stringent measures were taken against these OEMs.
The complaints lodged against the OEMs primarily pertained to their failure to comply with Production-Linked Incentive (PMP) requirements and breach of ex-factory prices. As a result, the ministry suspended the incentive payouts for the concerned manufacturers.
In response to the complaints, the ministry promptly suspended the disbursement of demand incentives to allow for a thorough investigation. The matter was then referred to the testing agencies of the ministry to ensure an impartial and accurate examination of the allegations.
After reviewing the reports from the testing agencies, it was revealed that six OEMs were found to be fully compliant with PMP norms, while seven others were found to be in violation. Additionally, four OEMs have agreed to refund the excess amount related to the breach of ex-factory prices to customers/purchasers of electric vehicles (EVs).
The FAME India Phase II scheme was launched by the Centre for a five-year duration starting from April 1, 2019, with a budgetary support of ₹10,000 crore. The main focus of the scheme is to support the electrification of public and shared transportation. It aims to provide demand incentives for 7,090 buses, 500,000 e-three-wheelers, 55,000 e-four-wheeler passenger cars, and 1 million e-two-wheelers. The scheme also supports the creation of charging infrastructure. Recently, the government extended the scheme’s implementation till March 2024.
In addition to the actions taken against non-compliant OEMs, the Centre has also reduced the subsidy per kilowatt-hour (kWh) of battery capacity under FAME II, starting from June. These measures demonstrate the government’s commitment to promoting the adoption of electric vehicles and fostering the growth of the electric mobility ecosystem in India.
