Centre may blacklist Hero Electric

Hero Electric, Okinawa, Benling failed to return incentives. These firms were already de-registered from FAME-II scheme and now heading towards blacklisting from all govt schemes

Three electric vehicle makers, Hero Electric, Okinawa and Benling India, which failed to return the benefits wrongly claimed under the government’s flagship FAME-II scheme, could be blacklisted from all central schemes, officials said.

In 2022, complaints were received by the Ministry of Heavy Industries regarding flouting of the FAME-II guidelines by various original equipment manufacturers (OEMs) registered under the scheme, alleging that they were selling electric vehicles in violation of the local sourcing requirements and engaged in rampant imports of vehicle parts.

The ministry investigated 13 companies, out of which six were found to be violating the Faster Adoption of Manufacturing of Electric Vehicles (FAME-II) norms, including Hero Electric, Okinawa Autotech, Benling India Energy and Technology, AMO Mobility, Greaves Electric Mobility, and Revolt Motors. Out of these companies AMO Mobility, Greaves Electric Mobility and Revolt Motors returned the subsidy amount along with interest within a few months and got a clean chit from the government. However, Hero Electric, Okinawa Autotech, and Benling India did not return the incentives and were consequently de-registered from the FAME-II scheme.

“Hero Electric, Okinawa Autotech and Benling India were deregistered. After that, the next step is debarment from all schemes of the Ministry, that has been done for Hero Electric and Benling India. Okinawa was not debarred because they were in court at the time. The next step is blacklisting from all schemes under the Government of India. That has not happened so far because it is a step-by-step process and the Ministry of Finance gives the approval for debarment from all the ministries’ schemes/policies for any company,” a senior official said.

Separate emails seeking comments from each of the three companies could not elicit any immediate response. The official also informed that AMO Mobility, Greaves Electric Mobility and Revolt Motors got a clean chit in FAME-II but they are not being registered under Electric Mobility Promotion Scheme (EMPS) 2024.

“The process of making them (the three companies who got a clean chit) eligible for future schemes is on. A committee was appointed by the ministry. It has some findings. Since this matter is sub-judice and in court, we cannot divulge details,” he said.

The Ministry of Heavy Industries (MHI) in India launched the Electric Mobility Promotion Scheme (EMPS) in March 2024. It aims to boost the adoption of electric two-wheeler and three-wheeler vehicles for commercial purposes and provide the necessary support for developing and manufacturing EVs in India. The EMPS-2024 will be implemented for four months, from April 2024 to July 2024. It has a budget of Rs500 crore and provides subsidies to EVs.

Subsidies of up to Rs10,000 will be provided for each electric two-wheeler, up to Rs25,000 for each small electric three-wheeler, and up to Rs50,000 for each large three-wheeler. The MHI will reimburse the subsidies or demand incentives to the EV manufacturers upon the sale of a vehicle, which will also benefit the consumers as the subsidy amount will be deducted from the final invoice price, thus reducing the purchase price of the EVs.