Greaves Electric Mobility (formerly Ampere Electric Vehicles) said it has refunded around Rs 124 crore subsidy it received under the Rs 10,000 crore Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-II) ) program.
“In light of our commitment to the interests of consumers, to avoid protracted litigation, and without admitting any allegations, claims or statements in the notice. Greaves Electric Mobility has refunded the entire incentive to the Ministry of Heavy Industry ( MHI) claim of Rs 124 crore appx, along with accrued interest, and without prejudice to our statutory rights,” the company said in a public statement.
Greaves is one of seven electric two-wheeler (e2W) makers accused by the government of selling vehicles without complying with the localization mandate.
The company has also asked the MHI to take necessary steps to withdraw the show cause notice and return it to the portal soon.
Greaves Electric Mobility, along with six other players – Hero Electric, Okinawa Autotech, Benling India, Revolt Intellicorp, Amo Mobility and Lohia Auto – were found to be using imported products that violated Phased Manufacturing Program (PMP) guidelines. In April, these companies were asked to return subsidies totaling Rs 469 crore.
The government also banned these companies from making future claims under the scheme.
In August, RattanIndia-owned EV maker Revolt Intellicorp paid Rs 50.02 crore to the Center as punishment for violating the guidelines of the FAME subsidy program that aimed to promote local production and adoption of EVs.
The PMP guidelines of the flagship FAME program are aimed at increasing domestic value addition. By importing products, the OEMs failed to achieve the objective of the scheme.
The FAME-II guidelines mandated OEMs to source 50 percent of their raw materials from Indian manufacturers. Despite this, some OEMs continued to use Chinese components, flouting the policy.
With Greaves Electric Mobility refunding the money, the government is optimistic that PMP violators will comply with the guidelines, creating a more compliant and self-sufficient electric vehicle manufacturing sector in India.
A senior government official told Business Standard on Monday: “It’s not just about Greaves Electric Mobility; we are also in discussions with other companies. They will all take similar actions in the near future.”
However, Hero Electric, which owed around Rs 133 crore, had proposed a payment of Rs 8 crore while seeking a reduction in the outstanding amount. However, the government has refused to accept any reduction in the amount due, this newspaper said.