Govt asks 7 EV makers to repay Rs 469 cr incentives

New Delhi: The government is exploring legal options against electric two-wheeler companies for not complying with the FAME II scheme norms, according to a senior government official.

The Centre has sought Rs469 crore from seven electric two-wheeler makers for claiming incentives while not complying with the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme norms. The government is seeking a refund of incentives from Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility, and Lohia Auto. As per the official, notices have been sent to the companies, and so far, only Revolt Motors has offered to refund the amount.

“We have sent them notices. So far, only Revolt has offered to pay others have not responded,” the official said. He noted that the deadline is almost over, and next week, the government will be making some decisions. “We are examining legal options," he said when asked about action being considered by the government. An investigation by the heavy industries ministry has revealed that these companies have availed fiscal incentives under the scheme by violating the norms.

As per the rules of the scheme, incentives were allowed to produce electric vehicles by using made-in-India components, but in the investigation, it was found that these seven firms allegedly used imported components.