Centre Launches Probe into Violation of FAME-II Norms by Electric Two-Wheeler Manufacturers
The Heavy Industries Ministry of India has initiated an enquiry into alleged lapses by officials of two validation and testing agencies, Automotive Research Association of India (ARAI) and International Centre for Automotive Technology (ICAT, regarding the violation of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) Scheme norms. The enquiry was launched following complaints that seven electric two-wheeler makers claimed incentives while not adhering to the scheme guidelines.
New Delhi, Nov 22 (PTI) – The Heavy Industries Ministry has launched an enquiry into the violation of FAME-II Scheme norms by electric two-wheeler manufacturers, following allegations of lapses by officials. The investigation will focus on officials of validation and testing agencies, Automotive Research Association of India (ARAI) and International Centre for Automotive Technology (ICAT). Secretary in the ministry, Kamran Rizvi, confirmed that corrective measures will be taken based on the findings of the probe.
We are enquiring into the lapses, if any, by all officials involved in the process, stated Union Heavy Industries Minister Mahendra Nath Pandey. The violations came to light after it was discovered that thirteen companies were importing components for their electric vehicles in violation of the Phased Manufacturing Programme localisation guidelines under the FAME-II Scheme.
The government plans to issue notices to additional companies found in violation of the localisation norms, seeking to debar them and recover incentives claimed since the 2019-20 fiscal year under the Rs 10,000-crore FAME-II scheme. So far, notices have been sent to seven electric two-wheeler makers, including Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility, and Lohia Auto.
The government is seeking a refund of incentives amounting to Rs 469 crore from these companies, as they have failed to adhere to the FAME-II scheme norms. Revolt Motors is the only company so far that has offered to refund the claimed amount.
As an effort to promote the adoption of electric vehicles and the manufacturing of electric mobility solutions in the country, the FAME-II scheme was introduced with a focus on promoting the manufacture and usage of electric two-wheelers and three-wheelers. The scheme provides incentives to manufacturers who comply with the specified norms, encouraging the transition towards cleaner and more sustainable modes of transport.
The results of the ongoing enquiry by the Heavy Industries Ministry will play a crucial role in holding the concerned officials accountable for any lapses and ensuring the adherence to the FAME-II Scheme guidelines by electric vehicle manufacturers. This move highlights the government’s commitment to promoting sustainable mobility and fairness in the electric vehicle industry.
As the investigation unfolds, it remains to be seen how the findings will impact the electric two-wheeler market in the country and if corrective measures will be effective in ensuring compliance with the FAME-II Scheme norms.
