Discussion on with govt on issues as most players under scrutiny: Hero EV CEO
The government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme has been providing incentives for the adoption of electric vehicles (EVs), and has resulted in a significant increase in the number of EVs sold in the country. However subsidies of close to 12 EV companies remain suspended on allegations of flouting the localisation and phased manufacturing program criteria under the FAME scheme.
Electric vehicles (EVs) have been gaining popularity in recent years, with many players entering the market. The government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme has been providing incentives for the adoption of EVs, and has resulted in a significant increase in the number of EVs sold in the country.
However, subsidies of close to 12 EV companies remain suspended on allegations of flouting the localisation and phased manufacturing programme criteria under the FAME scheme.
In an interview with CNBC-TV18, Sohinder Singh Gill, the Director-General at the Society of Manufacturers of Electric Vehicles (SMEV) and CEO of Hero Electric said, 85 percent of EV players are currently under some sort of scrutiny.
The industry has been engaged in active discussions with the government on sorting out these issues. The scrutiny is based on anonymous mails, and many original equipment manufacturers (OEMs) underwent checks last year. However, Gill stated that he is not aware of whether Ola or Ather have undergone such checks.
Testing agencies like the Automotive Research Association of India (ARAI) and International Centre for Automotive Technology (ICAT) are verifying whistleblower complaints against several companies by visiting their factories and examining production and supply chain records.
The agencies are also verifying complaints received against Ola, TVS and Ather Energy for selling vehicles above Rs 1.5 lakhs which is the price cap under FAME and for sourcing components indirectly through a maze of companies to avail subsides.
CNBC-TV18 learns that the government is in the process of putting in more checks and balances in the disbursement of subsidies through the fame scheme and may also hand over the probe into misappropriation of subsidies to a investigating agency.
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