Government considering taking action against e-scooter manufacturers
Government considering taking action against e-scooter manufacturers
The Centre is currently considering measures to punish the about six companies that produce electric two-wheelers that were investigated for obtaining subsidies intended to promote the adoption of electric cars.
The whip is used after the measure. The Centre is now considering measures to sanction approximately half a dozen companies that produce electric two-wheelers who were pulled up for claiming subsidies originally intended to boost the use of electric vehicles after cutting the subsidy for electric vehicles.
The Economic Times said that the remedies under consideration may include barring these bad enterprises from receiving subsidies in the future, citing anonymous senior government officials. Another option is to retroactively stop receiving the FAME-II sops benefits for sales made over the previous 15 months.
The industry recorded remarkable sales last year because to the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles) incentives. The incentives were designed to reward businesses that supported the growth of regional businesses that produce parts for autos.
The government has already made the decision to discontinue paying 13 companies under the FAME II programme a total of Rs. 1,400 crore. However, the administration is currently paying out subsidies to the businesses that were not found guilty of claiming incentives for which they were ineligible, totaling around Rs 200 crore.
The government sent recovery warnings to Hero Electric, AMO Mobility, Revolt Motors, Okinawa Autotech, Ampere EV, Lohia Auto, and Benling India last month after discovering the fraudulent practises of claiming subsidies. 500 crore rupees were the total sum the government wanted to recoup from these businesses.
The official who was cited by the publication added that the punishment would be decided upon when the recovery had occurred.
The government does not want to respond fast, though, as more sanctions may have an impact on investments in this developing industry. A Greaves Electric Mobility spokeswoman said, “GEM is committed to helping realise India’s ambitions to be a world leader in developing, engineering, and manufacturing electric vehicles.” Greaves Electric Mobility is the firm that produces Ampere electric vehicles. He added that the organisation was collaborating with the government to comprehend its worries and had presented a thorough case to the relevant authorities.
AMO Mobility, a company in the electric mobility sector, has recently made a statement regarding the subsidy it has received. According to their representative, AMO Mobility has only received a subsidy of Rs 0.85 crore, which is significantly lower than the total subsidy amount of approximately Rs 11 crore that has been distributed to customers thus far. The company acknowledges that the subsidy it received is relatively minor in comparison to the overall subsidies provided to customers.
AMO Mobility’s representative expressed their commitment to resolving this matter with the concerned agency and ministry. While they consider their subsidy amount to be small, they are actively seeking support from the agency and ministry to address this issue. Their goal is to promote the transition from conventional to electric mobility in India and seek assistance in achieving that objective.
The statement suggests that AMO Mobility is engaging with the relevant authorities to rectify the subsidy disparity and ensure that they receive a fair share of the subsidies. By emphasizing their commitment to the paradigm shift towards electric mobility, they are seeking cooperation and support from the agency and ministry to facilitate the growth of the electric mobility sector in India.
It is important to note that the exact nature of the subsidy disparity and the reasons behind it are not explicitly mentioned in the statement. It could be a result of administrative issues, eligibility criteria, or other factors that have led to a lower subsidy allocation for AMO Mobility compared to other customers in the sector. However, AMO Mobility’s representative’s assertion that they are in contact with the agency and ministry indicates their proactive approach in resolving this matter.
The statement highlights the company’s belief in the potential of electric mobility in India and their willingness to collaborate with the relevant authorities to overcome any obstacles they may face. It demonstrates their determination to contribute to the shift towards cleaner and more sustainable transportation options in the country.
As the situation unfolds, it will be important to monitor any further developments or updates from AMO Mobility and the actions taken by the agency and ministry to address the subsidy disparity. Resolving this issue will not only ensure fairness for AMO Mobility but also contribute to the broader goal of promoting electric mobility as a viable and environmentally friendly transportation solution in India.
Subsidy payments to 13 companies have been halted pending the outcome of an investigation by the International Centre for Automotive Technology and Automotive Research of India. These two are testing organisations that determine whether the businesses who were initially found guilty of violating local sourcing rules by using parts in their automobiles. These parts were apparently imported from China.
Under the FAME II subsidies, the government has received almost 10.5 lakh subsidy claims. However, the ministry of heavy industries rejected 4 lakh claims.
