Greaves Electric Mobility Offers to Pay Rs 125 Crore FAME Subsidy in Response to Local Sourcing Violations

The stance follows the recent recovery notice by the Indian government sent to several EV makers

Several Indian electric two-wheeler manufacturers are attempting to refund subsidies granted under the Rs 10,000 crore Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme. Some notable names among these include Greaves Electric Mobility (formerly Ampere Electric Vehicles), Ola Electric, Ather Energy, TVS Motor Company, and Hero MotoCorp. These firms were investigated by the government for breaking local sourcing criteria, which were required in order to qualify for FAME India incentives. Since the plan intended to encourage the production and use of electric vehicles within India, allegations of noncompliance with these standards have hampered their efficacy. Seven firms have received recovery notifications totalling Rs 450 crore, with Greaves Electric Mobility facing the greatest payback requirement. Okinawa and Hero Electric are close behind.

Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Lohia Auto, and AMO Mobility have all received Rs 450 crore in recovery notifications from the government. These notifications were issued in response to breaches of the FAME scheme’s local sourcing criteria. As a result of these violations, the corporations were also precluded from filing future claims under the system.

Greaves Electric Mobility has the greatest amount among these firms. Okinawa and Hero Electric are ranked second and third on this list, with debts totalling over Rs 100 crore. Greaves Electric Mobility CEO Sanjay Behl has stated the company’s commitment to working with the government and addressing their issues.

These outcomes highlight the significance of transparent, regulatory-compliant subsidy programs, as well as the requirement for competent supervision. They also serve as a cautionary tale for both manufacturers and policymakers as they work to boost local electric car manufacturing in India.