FAME Scheme: Hero Electric and Okinawa are among the companies being investigated for potentially exploiting subsidies provided under the FAME plan. Action may be taken against these businesses soon.
For allegedly abusing the subsidies provided under the Faster Adoption and Manufacture of Electric Vehicles (FAME) scheme, the central government may soon take action against Hero Electric and Okinawa. Sources suggest that the government has obtained legal advice in this situation and is also considering alternative steps, such as filing a police report and withdrawing a subsidy that was improperly claimed.
FAME Scheme abuse
At least 14 additional companies, including Benling, Okaya, Greaves Electric Mobility, Jitendra New EV, Kinetic Green Energy, Revolt Intellicorp, Lohia Auto, Avon Bikes, and Thukral Electric & Victory Electric, may also face government action in addition to Hero Electric and Okinawa.
While the inquiry into Hero Electric and Okinawa has been concluded, some sources with knowledge of the situation claim that the investigation against 12 other companies is still ongoing. Information from media reports claims that Hero Electric and Okinawa have claimed a subsidy of Rs 250 crore for reportedly imported components but have labelled the consignment indigenous.
Who is looking into this matter?
After receiving complaints from informants regarding these EV firms, the government testing organisations ARAI, or the Automotive Research Association of India, and ICAT, or the International Center for Automotive Technology, began an inquiry.