The unit of enormous industries has learned that sure electrical car unique tools producers have disobeyed the federal government’s phased manufacturing plan.

The government rolls out incentives for numerous classifications of EVs under the FAME-II scheme with an expenditure of ₹10,000 crores in its occurring phase. Last year, the scheme was extended till March 2024. EV OEMs are expected to comply with the PMP, which has a localization deadline for various components that go into an EV, to be able to claim the consumer demand incentives under the scheme.

These incentives help to reduce the price of their vehicles in the market. However, the government has received complaints that certain OEMs had been claiming these subsidies without meeting its DVA requirements, despite the deadlines being extended given covid-19

Crucial eligibility norms against which it disburses encouragements under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme“, said the secretary of the department Arun Goel.

He further added, “The department is presently executing a strategy to introduce traceability in the way manufacturers share documents of the domestic value addition in their products with the government.”

Subsidies have been put on hold for the OEMs being examined for these grievances, but the government will go to “the root” of the complaints and if OEMs can verify that DVA standards were met, the payouts will be disclosed.