Greaves Electric Mobility, formerly known as Ampere Electric Vehicles, has taken the initiative to refund the subsidy it received under India’s INR 10,000 crore Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME India) scheme. This comes after the government’s accusations that Greaves and six other electric two-wheelers (e2w) manufacturers failed to comply with local sourcing regulations.
The company has reached out to return approximately INR 124.91 crore, becoming the second company to offer such a refund. In total, seven companies, including Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Lohia Auto, and AMO Mobility, were issued recovery notices totaling INR 450 crore for violating the local sourcing requirements essential to claim incentives under the FAME India scheme. These companies were also barred from submitting future claims under the program.
According to official estimates, Greaves Electric Mobility has the largest outstanding payment among these companies, with Okinawa and Hero ranking second and third, each with dues exceeding INR 100 crore.
Sanjay Behl, Chief Executive Officer of Greaves Electric Mobility, stated, “We are working with the government to better understand their concern, and in relation to the same, we have filed a detailed representation.”
In August, Revolt Intellicorp, an EV manufacturer owned by RattanIndia, paid INR 50.02 crore as a penalty to the government for violating the guidelines of the FAME subsidy program, which aimed to promote local manufacturing and electric vehicle adoption.
The FAME subsidy plan was designed to boost electric vehicle adoption and has significantly increased the sale of clean-fuel two-wheelers in the country. Its primary objective is to incentivize the domestic production of electric vehicles. However, allegations of non-compliance with local sourcing regulations have impeded the program’s success.
Ola Electric, Ather Energy, TVS Motor Company, and Hero MotoCorp, other companies accused of violating FAME guidelines, have been addressing their differences with the Ministry of Heavy Industries. These companies were accused of mispricing their high-end vehicles to make them eligible for subsidies. Together, they have deposited INR 129.30 crore with IFCI Ltd, a state-run non-banking finance company, as they aim to rectify wrongly claimed amounts for consumers.
