New Delhi, May 30 (KNN) The Ministry of Heavy Industries (MHI) has cut the number of beneficiary two-wheelers under the Faster Adoption and Manufacturing of Electric (and hybrid) vehicles in India phase-II (FAME-II) scheme from around 989,000 to just under 564,000.

This decision has been taken by the ministry after an investigation found out that nearly every second electric two-wheeler sold under the Centre’s ambitious Rs 10,000 crore electric vehicle (EV) promotion scheme was sold with false localisation claims.

An investigation conducted by the Automotive Research Association of India (ARAI) found that multiple companies were relying on imports of key components like electric motors, controllers and on-board chargers.

As per reports, the government has withheld subsidies worth Rs 1,400 crore for over 4 lakh electric 2-wheelers sold under the FAME-II scheme since April 2022 The scheme envisaged subsidising 1 million electric two-wheelers by April 2024.

The FAME-II subsidies came with the condition that applicant companies adhere to a phased manufacturing plan (PMP) that prescribed a gradual increase in the local sourcing of parts. This was to ensure that tax-payer funds were being used to promote local manufacturing and not subsidising Chinese imports.

It commenced in April 2019 for a period of three years and was then extended further till March 31, 2024.  (KNN Bureau)