Following an investigation by the heavy industries ministry, it was found that these companies had availed fiscal incentives under the scheme by violating the norms.
According to the scheme’s rules, incentives were granted to produce electric vehicles using components made in India, but these seven companies were found to have used imported components during the investigation.
“Our investigation found that six companies were compliant, while seven companies violated the norms. Therefore, we are seeking Rs 469 crore from them. They must return the amount to the government,” said the official.
The seven companies are Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility, and Lohia Auto.
The ministry initiated the investigation after receiving anonymous emails alleging that several EV manufacturers were claiming subsidies without complying with the Phased Manufacturing Plan (PMP) rules, which aim to promote domestic manufacturing of electric vehicles.
As a result, the distribution of subsidies was delayed by the ministry last fiscal year.
Out of the seven companies, two have informed the ministry that they will refund the incentive amount with interest.
The official also clarified that the government has not barred these companies from manufacturing vehicles, “but they will not receive any incentives under the scheme.”
According to a spokesperson from Hero Electric, “The notice pertains to a period in which there is no cause for our non-compliance. It is not relevant for Hero Electric.”
Bajaj Chetak EV Road Test Review | Is it finally time to buy one? | TOI Auto
A spokesperson from Greaves Electric Mobility (GEM) stated that the company was one of the first supporters of and contributors to the government’s localization vision.
“We are working with the government to better understand their concerns, and we have submitted a detailed representation,” added the spokesperson.
Ayush Lohia, CEO of Lohia Auto, stated: “We want to emphatically state that we have not received any information or notice from the government department or concerned authority regarding the reversal of subsidies.”
He further stated, “We are unaware of the source of information that alleges Lohia Auto Industries’ involvement in this matter.”
Okinawa Autotech and Revolt Motors declined to comment.
To promote electric and hybrid vehicles, a Rs 10,000-crore program was announced under the FAME-II scheme in 2019. This program is an expansion of the existing FAME India I scheme (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles) that was launched on April 1, 2015, with a total outlay of Rs 895 crore.
Incentives in the three-wheeler and four-wheeler segments mainly apply to vehicles used for public transport or registered commercial purposes. In the two-wheeler segment, the focus is on private vehicles.