Hero Electric and Okinawa allegedly didn’t comply with localisation norms to claim subsidy under the FAME II scheme, and have told the Centre that they have not breached any guidelines, government sources said, according to a business daily.
The electric vehicle (EV) manufacturers submitted their representations after the Ministry of Heavy Industries (MHT) sent subsidy recovery notices to alleged defaulters of the FAME (Faster Adoption and Manufacturing of hybrid and Electric vehicles) scheme.
“We have asked the testing agencies to go through their documentation. As the defaulters have submitted their responses within the seven day deadline, the ministry is doing due diligence before taking further actions, government officials said. The ministry had sent notices to Hero and Okinawa in April, instructing the alleged defaulters to repay subsidy claims within 21 days. “
The notice said that if any representation was not submitted to the ministry within seven days, “further action, according to law, will be taken”. Under the FAME scheme, in order to be eligible for the subsidy, 50 per cent of the components in the EV should be domestically manufactured and resourced.
“Though the OEMS have submitted the same response that they did when the ministry started the investigation in September, we are verifying their claims as the matter is likely to go to courts,” a government official said. Both the EV manufacturers confirmed that they had submitted representations to the ministry.
An Okinawa spokesperson said the firm was actively engaged in ongoing dialogues and discussions with the ministry, and added: “Our intention is to resolve this matter amicably and in compliance with all regulations. As a responsible company, we value our relationship with the government and adhere to the guidelines set forth by the MHI.
Source: Business Standar
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