Probe into FAME violation nears completion, subsidies for EV companies may resume
Government is in the process of wrapping up the probe against 16 electric vehicle (EV) makers. CNBC-TV18 learns that there are no serious violations of phased manufacturing programme against a slew of companies including Kinetic and TVS.
The Ministry of Heavy Industries is in the process of wrapping up the probe against 16 electric vehicle (EV) makers. CNBC-TV18 learns that there are no serious violations of phased manufacturing programme against a slew of companies including Kinetic and TVS.
There were two categories of investigations - one, included 13 companies for allegedly misappropriating FAME subsidies and violating the phased manufacturing programme and the eligibility criteria under the FAME scheme.
The second probe was on complaints of overpricing, where companies like HeroMoto Corp, TVS Motor Company, Ola and Ather were accused by whistle-blowers of selling their electric scooters over and above the Rs 1,50,000 price cap under the FAME scheme.
Sources told CNBC-TV18 that all these probes are in the final stages. Meanwhile, Hero Electric and Okinawa have been debarred from the FAME scheme, and notices were issued to them on April 29. The government is looking to recover close to Rs 250 crore that these companies got in subsidies from the ministry of heavy industries since 2019.
CNBC-TV18 also learns that according to International Centre for Automotive Technology (ICAT) investigation, Kinetic Green, Okaya, TVS, Jitendra EV, Avon Cycle, Victory and Thukral, have been cleared of charges of violating the FAME criteria or the phased manufacturing programme.
Ola Electric has promised to reimburse Rs 130 crore which was collected as payment for the off-board charger to customers. CNBC-TV18 learns that other companies which were accused of the same charge may also follow suite. TVS told CNBC-TV18 that they will be taking more steps to address customer concerns.
First Published: May 2, 2023 8:00 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Kannauj Lok Sabha elections: Can ex-UP CM Akhilesh Yadav reclaim this erstwhile SP bastion?
May 12, 2024 11:32 PM
Khunti Lok Sabha Elections 2024: Arjun Munda and Kali Charan to lock horns in this clash of tribal leaders
May 12, 2024 8:59 PM
Malkajgiri Lok Sabha election: A three-way contest among turncoats
May 12, 2024 8:45 PM