After stopping FAME-2 subsidy to electric two-wheeler (E2W) companies for almost one year due to allegations of breach in guidelines, the government has issued show-cause notices to several leading firms, including TVS, Hero Motocorp, Ola Electric and Ather Energy, said sources close to the development.
After stopping FAME-2 subsidy to electric two-wheeler (E2W) companies for almost one year due to allegations of breach in guidelines, the government has issued show-cause notices to several leading firms, including TVS, Hero Motocorp, Ola Electric and Ather Energy, said sources close to the development.
The notices have been issued asking why action should not be taken for their alleged involvement in price manipulation and failure to adhere to the guidelines over localisation of components leading to flouting of norms under the Phased Manufacturing Programme (PMP). The notices were issued 10 days ago and company representatives have held dialogues with government officials to explain their stand.
There are around 50 E2W companies/brands in India and around 20-21 are certified to get subsidies under the FAME-2 scheme. And subsidies have been halted for 16-18 companies currently.
Sources said that other companies might also be issued show-cause notices in the future.
When contacted, Ather Energy did not comment. Mails sent to TVS Motor Company, Hero MotoCorp and Ola Electric remained unanswered at the time of going to press. These four companies control 40-45% of the domestic E2W market.
The names of the four premier EV companies were mentioned by an alleged whistle-blower in a mail sent in February to Hanif Qureshi, joint secretary, heavy industries ministry.
“The show-cause notice has been issued to almost everybody. We will get it shortly too. Executives from various companies such as Ola Electric, Ather Energy and TVS, who never spoke before about the issue with us, have now started to discuss ways to tackle this issue,” a top executive of an EV startup said to FE.