An audit is to be conducted to check if the supplies meet the requirements of the FAME-II scheme.
Notices from the Ministry of Heavy Industries (MHI) have been sent out to EV makers to check if the components being used are locally sourced. This is being done as the companies avail the Rs 10,000 crore Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME)-II benefits.
Major EV makers like Hero Electric and Okinawa have been asked to show documents supporting their subsidy claims. Some other firms are also now under the scanner. An audit is to be conducted to check if the supplies meet the requirements of the FAME-II scheme.
The FAME-II scheme stipulates that at least 50% of the value add for an EV should be done locally by EV makers. This would significantly reduce the final price for the end customer. Losing out on the subsidy would be a blow for both EV makers, as competition heats up in the EV space with HeroMotoCorp set to launch its new electric scooters this month.
