Greaves Electric Mobility refunds Rs 124 crore FAME II subsidy to MHI

Greaves Electric Mobility stated that it has refunded around Rs 124 crore subsidy received by the company under the Rs 10,000 crore FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India Scheme.

In a statement, Greaves said "In light of our commitment to consumer interests, to avoid protracted litigation, and without admitting to any of the allegations, contentions, or statements made in the notice, Greaves Electric Mobility has refunded to the Ministry of Heavy Industries (MHI) the entire incentive claim of Rs 124 crore, along with the accrued interest, and without prejudice to our legal rights".

Greaves, in its statement, also urged MHI to reactivate its NAB status so that, after paying the penalties imposed by the regulator, it can resume claiming subsidies in the near future.

Rattan India, the promoter of Revolt Motorcycles, refunded a total of Rs 50.02 crore in claimed subsidies in August. 

In addition to Greaves, the other six electric two-wheeler manufacturers who have been served with the notice are Hero Electric, Okinawa Autotech, Benling India, Revolt Intellicorp, Amo Mobility, and Lohia Auto, who have been found not adhering to the 50 percent domestic value-added norms and have been issued similar notices, which require these manufacturers to use localised products in order to claim the FAME II subsidy.

The Ministry of Heavy Industries had barred these companies from submitting claims for government FAME II subsidies by removing their names from the National Automotive Board website.

The Ministry of Heavy Industries issued the notices after a detailed audit was conducted by the testing agencies ICAT and ARAI, and a report submitted by them found the six electric two-wheeler manufacturers guilty of not adhering to the PMP norms.

According to MHI sources, Mukta Shekar, Joint Director Ministry of Heavy Industries, is currently leading the audit and monitoring the progress of these investigations.

Autocar Professional has learned that Shekhar, who is also the Government Nominee Director on the Board of HMT Limited, a Bengaluru-based PSU under the Ministry of Heavy Industries, will be following up with other offenders to pay up.