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The government will seek to recover Rs 150-200 crore claimed by two-wheeler players Hero Electric and Okinawa as subsidy under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. An investigation ordered by the ministry of heavy industry (MHI) showed the two players allegedly used multiple imported components in electric two wheelers, violating norms. The two companies also face de-recognition under the scheme, barring them from any subsidy payment in future.
Under the Rs 10,000 crore FAME-II scheme, electric two-, three-, four-wheelers and buses are eligible for incentives to push their use in public transport. MHI, however, decided to probe the incentive payment after it received complaints, alleging violation of norms by some companies.
In case of complaints related to overpricing, where companies asked consumers to pay for electric chargers and software, a breach of Rs 1. 5 lakh cap for two-wheelers was seen.
In case of complaints related to violation of the Phased Manufacturing Programme (PMP), which required companies to use domestically-produced components over a period of time, no violations were seen in case of Okaya EV and Kinetic Green. But, Okinawa and Hero Electric allegedly resorted to “rampant use” of foreign-made parts.
Complaints of PMP violations were referred to testing agencies for verification. These agencies checked details of sourcing of parts, and many other aspects.
Okinawa MD and founder Jeetender Sharma said: “At Okinawa Autotech, we have always adhered to government policies. . . We have not been informed about any such action of reversing subsidies by the authorities. As a responsible corporate entity, We have submitted our documents to relevant departments and have been supporting them at every step, as and when required. We are also in constant dialogues with the government to resolve the issue and we hope to have a resolution soon. ”
“There is no truth whatsoever in the information you have been provided. First, there is nothing new in the information that the DHI has proceeded to withhold subsidies of Hero Electric along with 12 other OEMs based on allegations by an anonymous e-mailer, who has since been reported to police, CBIC and other authorities for harassment with a view to extort, etc,” said a Hero Electric spokesperson.
Second, no misuse has occurred. All processes and production by Hero Electric — as other OEMs — was under supervisory certification of department through authorised agencies, the spokesperson said, adding, there is no question of a refund when OEMs have not been paid subsidies for last 15 months. How can you ask for what has not been paid? Or are you suggesting that department intends to ask back from customers the subisidies that have been passed on to them by OEMs?”
Under the Rs 10,000 crore FAME-II scheme, electric two-, three-, four-wheelers and buses are eligible for incentives to push their use in public transport. MHI, however, decided to probe the incentive payment after it received complaints, alleging violation of norms by some companies.
In case of complaints related to overpricing, where companies asked consumers to pay for electric chargers and software, a breach of Rs 1. 5 lakh cap for two-wheelers was seen.
In case of complaints related to violation of the Phased Manufacturing Programme (PMP), which required companies to use domestically-produced components over a period of time, no violations were seen in case of Okaya EV and Kinetic Green. But, Okinawa and Hero Electric allegedly resorted to “rampant use” of foreign-made parts.
Complaints of PMP violations were referred to testing agencies for verification. These agencies checked details of sourcing of parts, and many other aspects.
Okinawa MD and founder Jeetender Sharma said: “At Okinawa Autotech, we have always adhered to government policies. . . We have not been informed about any such action of reversing subsidies by the authorities. As a responsible corporate entity, We have submitted our documents to relevant departments and have been supporting them at every step, as and when required. We are also in constant dialogues with the government to resolve the issue and we hope to have a resolution soon. ”
“There is no truth whatsoever in the information you have been provided. First, there is nothing new in the information that the DHI has proceeded to withhold subsidies of Hero Electric along with 12 other OEMs based on allegations by an anonymous e-mailer, who has since been reported to police, CBIC and other authorities for harassment with a view to extort, etc,” said a Hero Electric spokesperson.
Second, no misuse has occurred. All processes and production by Hero Electric — as other OEMs — was under supervisory certification of department through authorised agencies, the spokesperson said, adding, there is no question of a refund when OEMs have not been paid subsidies for last 15 months. How can you ask for what has not been paid? Or are you suggesting that department intends to ask back from customers the subisidies that have been passed on to them by OEMs?”
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