Kumaraswamy tells automakers to follow PM E-DRIVE norms

New Delhi: Union Minister H D Kumaraswamy told automakers to follow the guidelines while availing incentives under the Rs 10,900 crore PM E-DRIVE scheme launched on Tuesday, asserting that there should be “no scope” for controversy like in the FAME-II scheme. The heavy industries minister’s remarks assume significance as the second phase of FAME-II (Faster Adoption and Manufacturing of Electric Vehicles) scheme was marred by allegations of some companies availing fiscal incentives by violating the norms. The FAME-II regulations permitted incentives for producing electric vehicles using made-in-India components. However, a probe by the heavy industries ministry had revealed that some companies purportedly utilized imported components.

The ministry conducted the investigation after receiving anonymous e-mails alleging that several EV makers were claiming subsidies without complying with the Phased Manufacturing Plan (PMP) rules to boost domestic manufacturing of electric vehicles. “Finally I request our manufacturers because in the FAME 2 Scheme, some kind of difference between the manufacturers and our ministry because of 2-3 manufacturers not following the guidelines of the scheme …. Some differences, some controversy, actually everyday they are giving a representation to our ministry,” Kumaraswamy said. “My personal request for all our manufacturers, I don’t want to give any scope for controversy or any differences … Whatever guidelines we have implemented, please follow it,” he added while addressing the launch of PM E-DRIVE.

The government on Tuesday launched the PM E-DRIVE Scheme, with an outlay of Rs10,900 crore for faster adoption of electric vehicles, setting up of charging infrastructure and development of EV manufacturing ecosystem in India. The scheme shall be implemented from October 1, 2024 to March 31, 2026. The EMPS-2024 (Electric Mobility Promotion Scheme) being implemented for the period April 1, 2024 to September 30, 2024 is being subsumed under the PM E-DRIVE scheme. The subsidy under the PM E-DRIVE scheme for electric two-wheelers has been fixed based on battery power at Rs 5,000 per kilowatt hour but the overall incentive will not exceed Rs 10,000 in the first year. In the second year, it will be halved by Rs 2,500 per kilowatt hour, and the overall benefit will not exceed Rs 5,000.