FAME scheme | Heavy Industries Ministry to recover Rs 250 crores from Okinawa and Hero Electric

Ministry of Heavy Industries has issued notices to electric vehicle makers Hero Electric and Okinawa to recover Rs 250 crores which the two companies have claimed as subsidies under the Faster Adoption and Manufacturing of Electric (FAME) Vehicle Scheme. Sources told CNBC-TV18 that notices for debarment from FAME scheme and recovery of amounts wrongly claimed were issued to the companies on 29th April, 2023.

"Both companies have been found to be non-compliant with the regulations through the rampant use of imported parts in place of local parts in the manufacturing of electric models approved under the FAME-II Scheme", said a government official.

The action comes after the government received a final report from testing agencies including the ARAI and ICAT. The recovery will pertain to subsidies disbursed to the two companies since FY 2019-20. Sources said Rs 116 crore will be recovered from Okinawa Autotech and Rs 133 crores from Hero Electric.