Revolt Intellicorp returns FAME-II subsidy to Centre

Revolt Intellicorp Pvt. Ltd has returned the incentives under the FAME II scheme to the union ministry of heavy industries after it was found that it had claimed the amount without meeting key criteria of the scheme.

Speaking to reporters here, Hanif Qureshi, joint secretary, ministry of heavy industries, said Revolt paid ₹50.02 crore, including interest, for not complying with the phased manufacturing programme norms under FAME II. It had claimed subsidies worth ₹44.3 crore. Under the norms, EV manufacturers benefiting from FAME II scheme need to manufacture the vehicles and components indigenously.

Seven companies, including Hero Electric, Okinawa Autotech, Revolt Motors, Benling India, Ampere EV, Amo Mobility, Lohit Auto, were found to be claiming subsidies wrongfully under FAME II, after assembling EVs in India with imported components. Overall, falsely claimed subsidy adds up to ₹469 crore.

In July, the Centre asked the firms to return the incentives, and had warned of legal action if the dues were not paid.

The official on Thursday said that a few other companies have also shown their intent to return the incentive amount and the government has decided to give them a few more weeks to them. He also added that the ministry would proceed with legal action if the subsidies are not paid back.

In case of non-payment of dues these companies may be barred from FAME II as well as other schemes by the central government, he added.

Recently, a few companies had reached out to the Prime Minister’s Office through the Society for Manufacturing of Electric Vehicles (SMEV), requesting it to waive the penalty, and withdraw the notices. In a statement, SMEV said that ministry’s claim for subsidy refunds lacks a “valid basis”.

“SMEV expresses understanding for OEMs that may feel pressured to comply with this irregularity. We believe that this situation may eventually create embarrassment for the Ministry and may eventually be rectified,” it said.

Mint reported on 28 July that the government is not likely to relent to their demand and will take them to court if the penalties are not paid.

In response to a question in parliament, the minister of state for heavy industries, Krishan Pal Gurjar, said the government received 17 complaints regarding misappropriation of subsidies under FAME II scheme by some EV manufacturers.

“The complaints are related to violation of Phased Manufacturing Programme guidelines of FAME India Scheme Phase-II. All complaint cases have been referred to testing agencies for re-verification,” the minister said.

“After examination of reports in respect of two OEMs, the models of these two OEMs have been suspended from the FAME scheme,” the minister said in a written reply without divulging their names.

He also said the processing of their pending claims has been stopped till they submit sufficient evidence to show their compliance to PMP timelines.

The ministry formulated Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) scheme for a period of five years commencing from April 01, 2019 with a total budgetary support of ₹10,000 crore. This phase mainly focuses on supporting electrification of public & shared transportation, and aims to support through demand incentive 7090 eBuses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers, along with creation of charging infrastructure is also supported under the Scheme.

According to the government, so far under phase-II of FAME India scheme, about 7.40 lakh electric 2-wheeler have been sold as on 20 July 2023.