FAME-II sops for Hero Electric, Okinawa put on hold

Both OEMs have been asked to provide evidence to show their compliance with the localization norms.

The government of India has stopped processing pending FAME-II subsidy claims of Hero Electric and Okinawa. Krishan Pal Gurjar, Minister of State for Heavy Industries, stated that sops under the EV policy have been put on hold until the companies provide sufficient evidence to show their compliance with phased manufacturing plan (PMP) timelines.

Reports suggest that Hero Electric and Okinawa have been served notices for not complying with the conditions of the FAME-II scheme. Both companies allegedly used imported components in their vehicles that were passed off as locally sourced to claim the subsidy.

The government had received complaints regarding the violation of localization norms. Models of both OEMs have now been suspended from the FAME-II scheme following a thorough examination.

The government’s aim was to sell 10,00,000 electric 2-wheelers, 5,00,000 electric 3-wheelers, 55,000 4-wheelers and 7,000 electric buses through the FAME-II scheme in 5 years. According to the minister, 7,92,529 electric 2-wheelers, 81,172 electric 3-wheelers, 6,831 electric 4-wheelers, and 2,434 e-buses have been sold as on February 15, 2023.

Source: ET Auto