Govt launches probe into alleged violations of FAME-II norms by electric two-wheeler makers

The Ministry of Heavy Industries has initiated a comprehensive inquiry into purported lapses by officials that enabled seven electric two-wheeler manufacturers to claim incentives without adhering to the norms set by the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme. 

Kamran Rizvi, Secretary in the ministry, announced that the investigation also encompasses officials from validation and testing agencies, including the Automotive Research Association of India (ARAI) and the International Centre for Automotive Technology (ICAT). The findings of the probe are anticipated to be released within a month.

The probe was prompted by complaints alleging that 13 companies were importing components significantly in violation of FAME-II norms. ARAI and ICAT were tasked with examining whether these companies were following the Phased Manufacturing Programme localisation guidelines.

Union Heavy Industries Minister Mahendra Nath Pandey addressed reporters, stating, “We are enquiring into the lapses, if any, by all officials involved in the process.” Corrective measures will be taken based on the findings, and these may involve individuals as well as systemic corrections.

Earlier this year, the government had signalled its intention to issue notices to companies found violating localisation norms under the INR 10,000-crore FAME-II scheme. A senior official mentioned that legal options were being explored against electric two-wheeler companies that failed to comply with FAME-II norms. Notices were sent to the companies, with only Revolt Motors offering to refund the claimed incentives.

The government is seeking a refund of incentives amounting to INR 469 crore from seven electric two-wheeler manufacturers: Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility, and Lohia Auto.

Minister Pandey, speaking at an event organised by the ministry on promoting localisation, emphasised the need for high standard and high-tech localisation to become global suppliers. He highlighted Prime Minister Narendra Modi’s vision of a self-reliant India and the goal of producing all necessary goods domestically. The minister commended the automotive sector for its efforts in technology upgradation through schemes like the Production-Linked Incentive (PLI) for automobiles and auto components.

Pandey remarked, “Be it the PLI scheme launched by the ministry to promote localisation or schemes like FAME, India is moving forward at a fast pace towards a strong economy. Capital Goods Scheme and schemes being run to promote manufacturing, all have the same aim that we should manufacture international level products in the country and create employment for our youth.”