homeauto NewsTop electric two wheeler makers to reimburse Rs 288 crore to customers for misusing FAME subsidies: Sources
Top electric two-wheeler makers to reimburse Rs 288 crore to customers for misusing FAME subsidies: Sources
Ather will reimburse Rs 140 crore to around 95,000 customers; Ola Electric will reimburse Rs 130 crore to nearly 1 lakh consumers; TVS will reimburse Rs 15.6 crore to 87,000 customers; and Hero MotoCorp will reimburse Rs 2.23 crore to 1,100 consumers.
India’s top electric two-wheeler makers have informed the Automotive Research Association of India (ARAI) that they will reimburse 100 percent of the portable charger cost to customers. Companies like Ola Electric, Ather Energy, TVS Motor Company and Hero MotoCorp have stated that they would be reimbursing the amount charged of their own volition, government sources told CNBCTV18.
Ather will reimburse Rs 140 crore to around 95,000 customers; Ola Electric will reimburse Rs 130 crore to nearly 1 lakh consumers; TVS will reimburse Rs 15.6 crore to 87,000 customers; and Hero MotoCorp will reimburse Rs 2.23 crore to 1,100 consumers.
Moreover, the Ministry of Heavy Industries will also recover around Rs 25 crore from Ather for reduced battery capacity on account of not buying upgraded software.
The two-wheeler companies have also informed ARAI that a duly certified statement will be submitted to the testing agency as proof of reimbursement to customers once the entire amount is disbursed.
The government has now received investigation reports from testing agencies against Hero MotoCorp, TVS, Ather Energy and Ola Electric. Following the undertaking from companies on reimbursing the cost of the charger, the government is likely to start disbursing subsidies due to these companies in the last two months.
CNBC-TV18 has learnt that the government is likely to hold back the amount due by companies to customers, till they give a letter stating that all customers have been reimbursed.
"TVS Motor has fully complied with all government regulations specified under FAME. Further towards alleviating ambiguity and ensuring a clear policy direction, TVS Motor will offer a goodwill benefit scheme for its customers who have paid over and above the threshold limit fixed by FAME," said KN Radhakrishnan, Director and CEO of TVS Motor Company.
He added that the overall cost impact of this on the company would be less than Rs 20 crores.
Hero MotoCorp, TVS Motor Company, Ather Energy and Ola Electric have been under scrutiny by the Ministry of Heavy Industries following whistleblower complaints. According to the complaints, all four companies were charging customers over and above the Rs 1.5 lakh threshold under the central government's FAME scheme for availing the subsidies.
The companies had earlier claimed that the additional cost was for additional software features and the off-board charger. Both Ather Energy and Ola Electric have also reduced the cost of their electric scooters to meet the scheme's eligibility criteria.
(Edited by : Vivek Dubey)
First Published: May 3, 2023 6:06 PM IST
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