India has launched a probe into the alleged misappropriation of incentives given under a 100 billion rupee ($1.2 billion) scheme, which was designed to accelerate the adoption of electric vehicles (EVs) in the country.
Indian Minister for Heavy Industries Mahendra Nath Pandey told Parliament on Tuesday that the investigation was initiated in response to complaints received by the ministry involving 12 local automakers.
Pandey said that scheme subsidies for two automakers had been suspended following a review of complaints, and processing of their pending claims had been stopped until they provide evidence of compliance. The minister did not disclose the names of the companies.
India launched the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme in 2015 to promote EVs through purchase subsidies and production incentives. The country aims to attain 30 percent EV adoption by 2030.
“This scheme helps in the demand generation of electric vehicles by way of reducing the cost of acquisition of such vehicles. As the demand for electric vehicles increases, the pace of implementation of FAME Indian scheme also increases,” Pandey said.
Industry Body Refutes Complaints
However, the Indian Society of Manufacturers of Electric Vehicles (SMEV) refuted the claims, saying that the government failed to address the underlying impact of COVID-19 on the market and production, which rendered automakers unable to meet the scheme guidelines.SMEV Secretary General Ajay Sharma attributed the alleged misappropriation to India’s supply chain policy, which failed to “respond to the impractical norms,” saying that automakers “do not run the supply chain.”
Among the 12 companies are Avon Cycles Ltd., Hero Electric Vehicles Private Ltd., Okinawa Autotech Private Ltd., Benling India Energy and Technology Private Ltd., and Okaya EV Private Ltd.