Diversified engineering firm Greaves Cotton Ltd (GCL) on Friday (May 26) said the Indian government has demanded a subsidy amount of approximately Rs 124 crore along with interest for violations of Phased Manufacturing Programme (PMP) guidelines from Greaves Electric Mobility Private Ltd (GEMPL).
In a letter to Greaves Cotton, written on May 25, the Ministry of Heavy Industries said it has proposed to deregister the company from FAME India Scheme Phase II as it failed to adhere to PMP guidelines.
Also, the Ministry of Heavy Industries (MHI) has directed GEMPL to deposit all the incentives claimed (approximately Rs 124 crore along with interest) under the said scheme to the MHI subject to submission of necessary representation.
Greaves Electric Mobility is a subsidiary of Greaves Cotton Ltd. It has electric two-wheeler models Primus, Magnus EX, and Reo Plus under the Ampere brand umbrella.
The Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) India scheme commenced on April 1, 2019, for a period of three years, and was further extended for a period of two years up to March 31, 2024.
The scheme is aimed at encouraging faster adoption of electric and hybrid vehicles with upfront incentives on the purchase of e-vehicles and setting up of necessary charging infrastructure for EVs.
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Further, the board of directors of GEMPL will be reviewing and analysing the facts regarding the purported notice and the alleged violations so as to take the appropriate course of action, including engaging with the government to better understand the alleged violations and for a resolution, it said.
Shares of Greaves Cotton Ltd ended at Rs 148.45, up by Rs 0.95, or 0.64 percent on the BSE.
(Edited by : Shoma Bhattacharjee)
First Published: May 26, 2023 7:06 PM IST
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