FAME: Electric 2-wheeler manufacturers deny allegations of non-compliance

Allegations have been made that the manufacturers are availing subsidy benefits without complying with the localisation requirements

Electric two-wheeler manufacturing companies have denied allegations of any wrongdoing in claiming benefits of subsidies provided under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. Manufacturers clarified that all their compliance related certificates for fulfilling localisation requirements are in place and that they had received regular extensions from government testing agencies as reported in The Economic Times (ET).

 

Electric two-wheeler manufacturers availing subsidies under the FAME scheme were accused of non-compliance with regards to localisation requirements, said the report.

 

The government had been extending the validity period of the certificates from April 2020, citing Covid-related disruptions. The last extension was given for a year on April 12, 2021, said the report.

 

Automotive Research Association of India and the International Centre for Automotive Technology are the agencies that issue the certifications for compliances related to localisation. Obtaining the certification is one of the prerequisites to avail the subsidy under the FAME scheme.

 

“Original equipment manufacturers (OEMs) were paid incentives based on the same extension,” Manu Sharma, a spokesperson for the Society of Manufacturers Of Electric Vehicles, told ET, said the report.

 

In addition to this, EV manufacturers have assured the government that the usage of locally sourced materials will increase with time, the report said.