Two electric vehicle manufacturers have received notices seeking details on compliance with siting norms under the government’s flagship electric vehicle promotion scheme, Heavy Industries Minister Mahendra Nath Pandey said.

The minister said if they are found violating the rules, “all possible action” will be taken against them, regardless of their size.

The minister declined to identify the two automakers. However, government sources, who did not want to be named, identified the automakers as Hero Electric and Okinawa Autotech.

This comes after several allegations that EV makers have ignored mandatory localization norms to avail subsidies under the Rs 10 billion Faster Manufacturing and Adoption of Electric (and Hybrid) India (FAME-India) scheme of rupees

“When we started the FAME scheme, all our conditions were mentioned in the policy. If anyone is found to be violating these conditions, we will take action against them as per the policy,” the minister said. “The policy is clear that we want to promote ‘Make in India’. If anyone, big or small, is found cheating the policies of the Indian government, we will take all possible action against them.”

Subsidies on electric scooters made by Hero Electric and Okinawa have been revoked, a senior government official said. FAME-India’s website shows that the subsidy has “expired” for all its models.

Officials from the Automotive Research Association of India (ARAI), an organization that certifies vehicles in India, have visited the manufacturing facilities of several electric vehicle makers over the past few months to audit the supply of their components, several people familiar with the matter said. Hero Electric and Okinawa’s subsidies were revoked based on ARAI’s findings.

“We are looking for answers from them,” Pandey said. “If they do not meet the guidelines, we will make a decision accordingly.”

Hero Electric declined to comment on the matter. “There is no comment on the same from Hero Electric,” a spokesperson said in an email.

An Okinawa spokesman said by email that the company followed the guidelines of the FAME policy and that the company complies with all government guidelines.

“The audits were done a few months ago as part of regular testing agency inspections for all OEMs. We have shared all the documentation with the testing agencies for their satisfaction. We are meeting the 50% DVA criteria as per government regulations. Also, in Okinawa, we ensure that the highest quality standards are met in all of our products and processes,” the email said. OEM means original equipment manufacturer, referring to car manufacturers in this case. DVA stands for Domestic Value Added.

A few other EV makers have also entered the scanner, ET reported on Friday. The senior government official quoted above said that while the matter is being investigated, action has only been taken against the two companies so far.

Hero Electric and Okinawa are two of the largest electric scooter manufacturers in India.



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