The registered association representing Indian manufacturers of electric vehicles SMEV (Society of Manufacturers of Electric Vehicles) has in its latest communication reached out to the Minister of Commerce and Industry, Piyush Goyal. In the letter to the Minister, SMEV has sought support for the EV industry facing embargo on utilisation of FAME subsidy through official NAB portal pending resolution of Rs 1,200 core worth of outstanding subsidy owed by the Ministry of Heavy Industries (MHI) and other impediments imposed on the industry.
In its letter, SMEV said that unpaid dues of Rs 1,200 crore since the last fiscal to affected OEMs, a further embargo on these companies to list sales on the official NAB portal, and further notices to recover past paid subsidies have created a crisis for the industry.
Sohinder Gill, Director General – SMEV, commenting on SMEV’s latest action said, “These are home-grown companies, fuelled by the zeal of ‘Make in India’, ‘Start-Up India’ and financed by Indian money and enterprises. It will be to nobody’s credit if these EV companies fail or are sold for a song to the highest bidder. It will be a black mark against Indian enterprise and the burgeoning E-Mobility plans of the Government. It is important to note that investors across the world are watching this space closely, and banks and financiers are refusing to extend credit.”
The industry body in its communication has said that the unreasonable situation, coupled with a cavalier attitude towards the financial condition of OEMs has prompted it to seek the Minister of Commerce and Industry’s support as he might understand the business cycle, the production and process of industrial units, the financial cycle and what impact it has on business when the cycle stops.
SMEV highlights that vendor payments across the EV ecosystem have been inordinately delayed. Employees across all these companies are insecure and salaries are being deferred or delayed. Dealerships are collapsing. The situation is near breaking point, said the Association, seeking his intervention and a meeting to discuss how these companies could tide over this crisis. A few days ago, SMEV had petitioned Niti Aayog to review the FAME policy.