Government Asserts FAME-II Guidelines Were Clear, Claims Companies Defaulted Knowingly

The Indian government is taking a stricter stance on the alleged misuse of subsidies under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) scheme. Here's a quick breakdown of the key developments:

• Clear Guidelines, Intentional Defaults: A government panel has concluded that the FAME-II guidelines were transparent and well-understood by all parties involved. This includes testing agencies, automakers (OEMs), and the Ministry of Heavy Industries (MHI) itself. The report emphasizes that companies knowingly flouted the guidelines.

• Scrutiny on Localisation: The panel also reviewed the timeline for implementing localization requirements. They found that these timeframes were established after consulting with stakeholders like industry players and testing agencies. Additionally, the enquiry process conducted by testing agencies was deemed consistent and uniform.

• Previous Report Deemed Incomplete: An earlier report by a Joint Secretary in December 2023 was found to be lacking. It contained shortcomings like failing to properly analyze the scheme guidelines and not examining the role of government officials. This report was rejected by the authorities.

• Independent Investigation & Reimbursement: In April 2023, the ministry initiated an investigation into potential subsidy misuse. A five-member committee headed by an Additional Secretary was formed to conduct an independent probe. Furthermore, the ministry had already asked 13 companies to return improperly claimed subsidies in the past few months.

This crackdown on FAME-II irregularities signifies the government's commitment to ensuring the scheme's intended purpose is upheld. It aims to promote genuine electric vehicle development and manufacturing in India, with a focus on domestic parts and components.