Govt asks Greaves Electric Mobility to return ₹124 crore over FAME II violations

The Ministry of Heavy Industries (MHI) has written to Greaves Electric Mobility (GEM), a subsidiary of Greaves Cotton, to return about ₹124 crore along with interest for violations under the Phased Manufacturing Programme (PMP) guidelines. The MHI said that it has proposed to deregister the company from the FAME II policy as it failed to adhere to the PMP guidelines. Greaves Electric Mobility retails electric scooters under the brand name Ampere and is one of the largest players by volume in the electric scooter segment.

The MHI has directed Greaves Electric Mobility to deposit the incentives amounting to ₹124 crore along with interest, which was claimed under the FAME II policy, subject to the submission of necessary representation. Greaves Electric Mobility has released a statement responding to the allegations and said it was working with the government to understand the “alleged violations and resolve any compliance concerns."

A company spokesperson for GEM said, “Greaves Electric Mobility (GEM) is a proud Indian company and a leader in India’s rapidly expanding EV sector. GEM was one of the first companies to enthusiastically support and deliver on the Government’s localisation vision. Our legacy of over 160 years represents a storied history of creating Indian jobs, supporting local suppliers, and building an inclusive workforce. We are working with the Government to better understand any alleged violations and resolve any compliance concerns in this rapidly evolving industry. GEM is committed to helping realise India’s ambitions to be a world leader in developing, engineering, and manufacturing electric vehicles."

A company spokesperson for GEM said, “Greaves Electric Mobility (GEM) is a proud Indian company and a leader in India’s rapidly expanding EV sector. GEM was one of the first companies to enthusiastically support and deliver on the Government’s localisation vision. Our legacy of over 160 years represents a storied history of creating Indian jobs, supporting local suppliers, and building an inclusive workforce. We are working with the Government to better understand any alleged violations and resolve any compliance concerns in this rapidly evolving industry. GEM is committed to helping realise India’s ambitions to be a world leader in developing, engineering, and manufacturing electric vehicles."

GEM sells a host of models under the Ampere brand including electric scooters like the Primus, Magnus EX, Reo Plus and more. The Ampere Primus is the manufacturer’s flagship offering, while the Magnus EX is its most popular product. All models have received incentives under the FAME II subsidy that aimed to make EVs more affordable.

The FAME II policy was implemented on April 1, 2019, for a period of three years and was extended for a period of two years until March 31, 2024. The recent amendment in the FAME II policy was the subsidy being brought down from ₹15,000 per kWh to ₹10,000 per kWh. The subsidy has been capped at 15 per cent of the vehicle’s ex-factory pricing. The updated pricing will be applicable from June 1, 2023.

Disclaimer: This Article is auto-generated from the HT Auto news service