Union Minister for Heavy Industries Mahendra Nath Pandey on Friday said the government will take action against the companies that have taken subsidies violating the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME)-II norms.
We have issued notices to two companies. Both companies have been asked to show documents that support their subsidy claims. If these companies have violated Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME)-II norms. Action will be taken as per the government rules, Pandey told ANI.
The heavy industries ministry will take action against the two electric vehicle makers if it will be found that they have not complied with the requirement of localization under the FAME-II scheme, the minister said.
“We have sought their reply on the notices. We have asked for some details,” Pandey said adding the government provides subsidies based on certain conditions that the EV makers have to meet under the scheme and one of the conditions was the local production of components.
“If they will be found violative of those provisions, then we will take steps as per that policy (scheme)…If somebody will not follow the government norms, then we will take action against them,” he added.
The ministry has sent notices to the two companies seeking information regarding the components which they have used in their vehicles, if they are locally produced or not as the firms have filed subsidy claims under the Rs 10,000 crore Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME-II) scheme, the minister told reporters here.
The minister did not disclose the names of the companies.
However, a government official on the condition of anonymity said that notices have been sent to Hero Electric and Okinawa and their subsidies are suspended till they send their replies to the ministry.
The official added that an audit by the Automotive Research Association of India (ARAI) is also underway against four companies.