Action will be taken against electric two-wheeler companies not following ‘FAME-2’, government is exploring legal options

Action will be taken against electric two-wheeler companies not following ‘FAME-2’, government is exploring legal options

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New Delhi : The government is planning to take legal action against two-wheeler manufacturing companies in India that do not follow FAME-2 rules. It is reported that the government is exploring the option of taking legal action against such electronic two-wheeler companies which are not following the rules of ‘Fame-2’ scheme. Along with this, in recent months, the Modi government at the Center has directed to return Rs 469 crore to the seven electric two-wheeler manufacturing companies of the country, which are not following the rules of the FAME-2 scheme. However, this move of the government has created a stir among electric two-wheeler manufacturing companies. Although some companies like Hero Electric have expressed their reaction after the government’s instructions, most of the electric two-wheeler manufacturing companies are silent.

Government directed seven companies to return money

According to a report in news agency Bhasha, the Modi government at the Center has fined Rs 469 from seven electric two-wheeler companies claiming incentive amount for not complying with the norms of FAME-2 scheme for rapid adoption and manufacturing of electric vehicles. Instructions have been given to return Rs. crore. The companies which have been directed by the government to return the money include Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility and Lohia Auto etc.

Only Revolt Motor agreed to return the money after government notice

Quoting official government sources, the agency’s report said that the Modi government at the Center has also issued a notice asking electric two-wheeler manufacturing companies to return the money. After this step of the government, out of these seven companies, till now only Revolt Motor has offered to return the money to the government. Sources have said that the government has sent a notice to the companies, in response to which only Revolt Motor has said that the money will be returned. No response has been received from other companies.

Six companies did not respond to the government notice

Official sources told the news agency that the last date for replying to the notice has also ended and except Revolt Motor, no reply has been given by the other six companies. In such a situation, the government has no other option but to take legal action. Sources said that the government may take a decision next week as an alternative to legal action. He told that the government is exploring all legal options and is considering taking strict steps.

The investigation of the Ministry of Heavy Industries revealed the arbitrariness of the companies.

The agency’s report said that the investigation conducted by the Ministry of Heavy Industries has revealed that seven companies manufacturing electric two-wheelers in India have defied the rules of FAME-2 and started production linked under the scheme. Incentive (PLI) scheme has been taken advantage of. As per the rules of the PLI scheme, incentives were allowed for manufacturing electric vehicles using components made in India, but the investigation by the Ministry of Heavy Industries has clearly found that seven companies manufacturing electric two-wheelers Imported components were allegedly used in the manufacturing of the vehicles.

Heavy Industries Ministry started investigation after receiving anonymous email

The agency’s report also said that the Ministry of Heavy Industries had conducted an investigation after receiving secret anonymous emails. The email alleged that many EV manufacturers were claiming subsidies to promote domestic manufacturing of these electric two-wheelers without following the Phased Manufacturing Plan (PMP) rules. After this the ministry delayed the subsidy distribution in the last financial year. Seven electric two-wheeler companies have urged the government to consider the possibility of withdrawing the additional discount given to the customers on the purchase of vehicles.

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