Revolt Intellicorp returns FAME-II subsidy to Centre

livemint.com:

₹50.02 crore, including interest, for not complying with the phased manufacturing programme norms under FAME II. It had claimed subsidies worth ₹44.3 crore. Under the norms, EV manufacturers benefiting from FAME II scheme need to manufacture the vehicles and components indigenously.

Seven companies, including Hero Electric, Okinawa Autotech, Revolt Motors, Benling India, Ampere EV, Amo Mobility, Lohit Auto, were found to be claiming subsidies wrongfully under FAME II, after assembling EVs in India with imported components. Overall, falsely claimed subsidy adds up to ₹469 crore. In July, the Centre asked the firms to return the incentives, and had warned of legal action if the dues were not paid.

The official on Thursday said that a few other companies have also shown their intent to return the incentive amount and the government has decided to give them a few more weeks to them. He also added that the ministry would proceed with legal action if the subsidies are not paid back. In case of non-payment of dues these companies may be barred from FAME II as well as other schemes by the central government, he added.

Recently, a few companies had reached out to the Prime Minister’s Office through the Society for Manufacturing of Electric Vehicles (SMEV), requesting it to waive the penalty, and withdraw the notices. In a statement, SMEV said that ministry’s claim for subsidy refunds lacks a “valid basis". “SMEV expresses understanding for OEMs that may feel pressured to comply with this irregularity.