After recent fires in electric vehicles, the department of heavy industries has increased the audits of all-electric vehicle manufacturers players taking FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) subsidy, sources privy to the developments told CNBC-TV18.
This comes after a high number of complaints regarding the violation of localisation criteria and quality norms were received, according to multiple people familiar with the development.
According to sources in the know told CNBC-TV18 that the subsidy disbursement was slowed down to ensure compliance with localisation criteria and to greater scrutiny.
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Also, subsidies have been stopped for companies including Hero Electric, Okinawa, Ampere, Thukral Electric, and Victory Electric Vehicles for alleged violations under the Fame-II scheme, which mandates at least 50 percent local sourcing, sources close to the development said.
Further, subsidies to the tune of Rs 500-600 crores have been put on hold by the department of heavy industries and the government may ask certain companies to return subsidies received in the past. However, a decision was yet to be taken by the government.
The Automotive Research Association of India (ARAI) which comes under the administrative domain of the Ministry of Heavy Industries is investigating the alleged violations.
(Edited by : Sudarsanan Mani)
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