These companies are going to be regarded as the winners of a long process adhering to the strictest standards analysis. In previous, the Treasury officials would try to recover around INR 155 crore from Hero Electric, INR 125 crore from Okinawa, and INR 50 crore from Benling. Seeing the possible instances of breaking the law among the manufacturers, officials of the Indian government tried to look into the issue in 2022.
The Ministry of heavy industries by its subcommittee also pronounced that Hero electric and Okinawa Autotech violated nothing of the FAME II Scheme’s phased manufacturing program (PMP) standard.
The outlook crystallization, as indicated by the Business Today website citing the government sources, follows a thorough look at the companies activities.
The apportioning by the committee offers a breath area for not one but two motorcircle companies that have been into examination due to the issue of unduly use of government subsidies.
Previously claimed to be budgeted to recover around INR 155 crore from Hero Electric, INR 125 crore from Okinawa, and INR 50 crore from Benling respectively.
The Government varied subsidies according to the PMP, a strategic industry program focused on developing domestic production capacity. The government governmental asserted that some enterprises continued to disregard the PMP process but still received FAME subsidies on discounted terms, which contradicted the aim of the scheme.
It is worth mentioning that it has been noted to the effect that the government is leaning towards litigation against Hero Electric, Okinawa Autotech, and Benling India for not refunding the wrongfully availed processes of the FAME campaign.
The Ministry of Heavy Industries intended to file the suit as collecting the overdue amount from these organizations after attempting several options did not work well.
The government hopes for the recovery of 155 crore from Hero Electric, 125 crore from Okinawa, and 50 crore from Benling. Having Hero Electric, Okinawa Autotech and Benling India, which are accused of cheating in the subsidy amount claiming, on the list is how a few of the main companies are presented.
Under the FAME Scheme, the government is in the process of recovering subsidies that electric vehicle (EV) manufacturers received in error. The Ministry of Heavy Industries had begun the verification procedure to assess the amount of subsidy received by EV two-wheeler manufacturers who did not match the government’s defined localization requirements for subsidy eligibility.
Domestic EV producers can provide a reduction of up to 40% on vehicle costs through the FAME-II plan, which the government will reimburse as a subsidy. To qualify for the subsidy, firms must verify that at least 50% of their products contain locally created components.
The Indian government started looking into the matter in 2022 after receiving complaints about manufacturers’ non-compliance with FAME- II requirements.
