Govt halts FAME subsidies to Hero Electric, Okinawa over part localisation – Times of India

Electric vehicle manufacturers like Hero Electric and Okinawa have been sent a notice by the Ministry of Heavy Industries, for scrutiny of components used in their products. The objective is to check whether the parts and components are locally manufactured for which the companies avail of benefits under the Rs 10,000 crore FAME II scheme (Faster adoption and manufacturing of electric and hybrid vehicles).
A TOI report earlier mentions that besides Hero Electric and Okinawa, Greaves Cotton‘s Ampere, Rattan India’s Revolt, Okaya, and Jitendra EV face a audit by ARAI (Automotive research Association of India) to check if the localisation requirements under the FAME II scheme are met by these companies.
The Ministry of heavy Industries’ website mentions that the government has decided to put FAME II subsidies on hold for Hero Electric and Okinawa, which collectively sell nearly 17,000 units a month. Revolt, Ampere, Okaya, and Jitendra sell 10,000-11,000 units per month combined.

The report further adds that the first round of ARAI inspection happened in the first weel of September and the second round that started on 30 September is underway currently.
While Hero Electric, Ookinawa and Revolt did not respond to media queries, Greaves Cotton stated: “An audit was successfully conducted by the test agency officials at our Ranipet plant and we have been given a clean chit.”
Jitendra EV, on the other hand, stated: Jitendra New Ev tech has not recieved any notice from the department of heavy industries about any of our company’s models becoming ineligible for subsidies under the new mechanisms to calculate domestic value addition under Fame-2.”





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