FAME scheme: Centre to take a call on action against Hero Electric and Okinawa soon
The government has been investigating misappropriation of subsidies by at least 14 electric vehicle players including Hero Electric, Okinawa, among others. Sources said that while the investigation against Hero Electric and Okinawa is complete, the probe against the 12 other companies is still underway.
The Central government is likely to take a call within a few days on the action to be taken against Hero Electric and Okinawa for allegedly misappropriating subsidies under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. Sources said the government has received a legal opinion and registration of an FIR, clawback of subsidies wrongfully claimed, among other options are under consideration.
The government has been investigating misappropriation of subsidies by at least 14 electric vehicle players including Hero Electric, Okinawa, Benling, Okaya, Jitendra New EV, Greaves Electric Mobility, Revolt Intellicorp, Kinetic Green Energy, Avon Cycles, Lohia Auto, Thukral Electric & Victory Electric.
Sources said that while the investigation against Hero Electric and Okinawa is complete, the probe against the 12 other companies is still underway. They added that Hero Electric and Okinawa have allegedly claimed subsidies of Rs 250 crore for imported components but declared the consignments as being indigenously. manufactured. Both companies, according to sources, have cited non disclosure agreements with component suppliers in their replies to the government.
Government testing agencies Automotive Research Association of India (ARAI) and the International Centre for Automotive Technology (ICAT) have conducted the probe after whistleblower complaints against the EV companies. The government has also taken inputs from the commerce ministry and directorate of revenue to crosscheck Customs records and confirm if there is any deviation from the phased manufacturing programme.
"At Okinawa Autotech, we have always adhered to government policies. In fact, Okinawa was the first company in the industry to receive a FAME II certification in 2019. We have not been informed about any legal action in this matter by the authorities. As a responsible corporate entity, we have submitted our documents to the relevant departments and support them at every step as and when required", said Jeetender Sharma, the managing director and founder of Okinawa Autotech.
Sharma also said there was no misappropriation of subsidy. "As a responsible brand we follow all the norms of subsidy and passed on all the subsidy to the customers in advance. There is no discussion of subsidy return with us. We are a responsible brand and believe in our government’s fair practices, there is no intention for any legal action from our side", he said.
There is a separate probe on against Hero Motocorp, TVS, Ather and Ola for claiming subsidies on scooters above the FAME price cap of Rs 1.5 lakh. Hero Motocorp, TVS, Ather and Ola have replied to the government queries, but additional clarifications have been sought, said a source.
The Department of Heavy Industries on Tuesday told parliament that the government has received complaints regarding the misappropriation of subsidies relating to the FAME scheme by some EV players. In its reply to a parliament question, the ministry said that the models of two OEMs have been suspended from FAME after receiving reports from testing agencies and the processing of pending claims for two OEMs stopped till they show compliance with PMP timelines.
CNBC-TV18 also reached out to Hero Electric for a statement. The company's reply is awaited.
(Edited by : Vivek Dubey)
First Published: Mar 21, 2023 4:08 PM IST
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