EV Makers Including Hero Electric, Okinawa, Benling Penalized For FAME-II Violations

New Delhi, May 20 (KNN) An inquiry by the Ministry of Heavy Industries (MHI) has determined that three electric vehicle (EV) manufacturers - Hero Electric Vehicles Pvt Ltd., Okinawa Autotech Pvt Ltd., and Benling India Energy and Technology Pvt Ltd. - were in violation of guidelines under the government's Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme.

According to sources familiar with the matter, a newly formed committee headed by an Additional Secretary at MHI has been investigating the issue for several months.

Their initial findings conclude that the companies flouted FAME-II norms and must pay significant penalty amounts - Rs 133.8 crore for Hero Electric, Rs 116.85 crore for Okinawa Autotech, and Rs 48.42 crore for Benling India.

These developments follow earlier reports suggesting the companies had received a clean chit, which ministry sources categorically deny. "The committee has effectively concluded that scheme notifications and guidelines were clear and well understood by all stakeholders," a source stated.

The saga began in 2022 when MHI received complaints alleging certain FAME-II registered original equipment manufacturers (OEMs) were selling vehicles in violation of the scheme's localisation requirements and improperly importing parts.

MHI conducted inquiries into 13 companies, finding six - including Hero Electric, Okinawa, Ampere Vehicles, Benling, AMO Mobility, and Lohia Auto - had flouted norms.

Penalties totaling Rs 469 crore were levied, though AMO Mobility, Greaves, and Revolt returned the subsidies with interest. Hero, Okinawa, and Benling were deregistered from FAME-II by late 2023 for non-payment.

The newly formed committee continues investigating the matter, with MHI maintaining there has been no clean chit issued to the companies as of now. The ministry aims to uphold accountability and ensure proper implementation of the FAME-II program to promote EV adoption in India.

(KNN Bureau)