The Ministry of Heavy Industries has launched an investigation into alleged misconduct by officials, resulting in seven electric two-wheeler manufacturers claiming incentives without adhering to the norms of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme. Kamran Rizvi, the ministry's secretary, stated that the probe includes scrutiny of officials from validation and testing agencies such as the Automotive Research Association of India (ARAI) and the International Centre for Automotive Technology (ICAT). The findings of the investigation are anticipated within a month, and corrective actions will be taken accordingly, potentially involving individuals and system improvements.

Earlier complaints revealed that 13 companies were importing components significantly in violation of FAME-II norms. The ministry had assigned ARAI and ICAT to assess compliance with Phased Manufacturing Programme localisation guidelines. Union Heavy Industries Minister Mahendra Nath Pandey informed reporters that the inquiry is examining potential lapses by all officials involved in the process.

In May, the government announced its intention to issue notices to companies violating localisation norms under the Rs 10,000-crore FAME-II scheme, seeking to debar them and recover incentives claimed since 2019-20. Subsequently, legal options were being explored against electric two-wheeler companies for non-compliance with FAME-II norms.

Notices were sent to the companies, and as of now, only Revolt Motors has offered to refund the amount. The government is pursuing a refund of incentives from Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility, and Lohia Auto, amounting to Rs 469 crore.

Minister Pandey, speaking at a localisation-promoting event, emphasised the necessity of high-standard and high-tech localisation to become global suppliers. He highlighted Prime Minister Narendra Modi's vision of a self-reliant India and the goal of producing all required goods domestically. The minister noted the automotive sector's efforts in technology upgradation through the Production Linked Incentive (PLI) scheme for automobiles and auto components. He emphasised that achieving a self-reliant India, supported by schemes like PLI and FAME, is crucial for meeting the demand for advanced technologies and auto electronics while fostering economic strength and employment opportunities.

Source: PTI