FAME-II Subsidy: Revolt Motors Pays Back INR 50 Cr To Govt

Revolt Motors has reportedly repaid INR 50.02 Cr to the government that it claimed as subsidies under the FAME-II scheme, including interest, after it was found to have claimed the subsidies in violation of the norms of the scheme.

“We have received a cheque worth INR 50.2 Cr from Revolt Intellicorp, which has been encashed today (Thursday),” Hanif Qureshi, joint secretary in the Ministry of Heavy Industries (MHI), was quoted as saying by news agency PTI.

He also said that the ministry will give “a few weeks more” to six other companies who were found to have violated the Phased Manufacturing Programme (PMP) norms.

To recap, in July this year, reports emerged that the MHI asked seven two-wheeler EV manufacturers to return subsidies worth a total of INR 469 Cr for flouting localisation norms under FAME-II.

Okinawa Autotech, Hero Electric, Ampere Vehicles, Benling India, Amo Mobility, and Lohia Auto were among the players who received the notice.

While Hero Electric was asked to pay the highest amount of INR 133.48 Cr, Ampere was expected to pay INR 124.91 Cr. Okinawa was asked to return INR 116.85 Cr. 

However, as per the news agency’s report, some of these players have maintained that they have not violated norms. Hence, they would have to submit documents validating the claims.

“We’ll give them a few weeks more. Still giving them 2-3 chances in case they want to furnish some documents. Otherwise, we will initiate legal proceedings,” Qureshi was quoted as saying. The recovery process will be initiated post that.

As per Qureshi, testing agencies, which were involved in examining if the EV manufacturers flouted localisation guidelines, submitted 13 reports to the MHI. Out of the 13 companies, six were found in compliance with the norms while seven were found to have violated them by importing components but claiming they were domestically manufactured.

Following this and the penalisation of four other manufacturers for allegedly keeping their vehicle prices lower to claim subsidies, the Indian government slashed the incentives under the scheme significantly.

Meanwhile, industry body Society of Manufacturers of Electric Vehicles (SMEV) has criticised the government’s moves. The SMEV, in multiple letters to various departments of the government, requested to rethink the policy, provide other options, and even called such steps “detrimental” to the country’s EV growth story.

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