Greaves is one of seven electric two-wheeler (e2W) manufacturers accused by the government of selling cars that do not meet the localization criteria.
Greaves Electric Mobility (previously Ampere Electric Vehicles) said that it has returned about Rs 124 crore of the Rs 10,000 crore Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-II) project subsidy.
“In light of our commitment to consumer interests, to avoid protracted litigation, and without admitting to any of the allegations, contentions, or statements made in the Notice. Greaves Electric Mobility has refunded to the Ministry of Heavy Industries (MHI) the entire incentive claim of Rs 124 crore appx, along with the accrued interest, and without prejudice to our legal rights,” the company said in a statement to the public.
Greaves is one of seven electric two-wheeler (e2W) manufacturers accused by the government of selling cars without adhering to the mandated localization.
The firm has also requested that the MHI take the appropriate procedures to rescind the show cause notice and return to the site as soon as possible.
Greaves Electric Mobility, along with six other companies — Hero Electric, Okinawa Autotech, Benling India, Revolt Intellicorp, Amo Mobility, and Lohia Auto — were found to be using imported products in contravention of the PMP requirements. These firms were required to refund Rs 469 crore in subsidies in April.
In addition, the government prevented these entities from filing further claims under the plan.
In August, RattanIndia-owned EV manufacturer Revolt Intellicorp paid the Centre Rs 50.02 crore as a penalty for breaking the criteria of the FAME subsidy scheme, which aimed to boost local production and EV uptake.
The flagship FAME scheme’s PMP criteria are focused at increasing local value addition. The OEMs failed to achieve the scheme’s goal by importing items.
The FAME-II guidelines required OEMs to acquire 50% of their raw ingredients from Indian producers. Despite this, several OEMs continued to use Chinese components, thereby circumventing the restriction.
With Greaves Electric Mobility repaying the money, the government is hopeful that PMP violators would comply with the rules, fostering a more compliant and self-sufficient electric car manufacturing sector in India.
On Monday, a senior government official told Business Standard, “It’s not just Greaves Electric Mobility; we’re also in talks with other companies.” They will all take similar moves in the near future.”
However, Hero Electric, which owes over Rs 133 crore, submitted a Rs 8 crore payment while demanding a decrease in the outstanding amount. According to this newspaper, the government has refused to accept any decrease in the outstanding amount.