New Delhi. To encourage the sale of electric vehicles, the Central Government had implemented the FAME-2 scheme in the year 2019. But now large scale frauds have been revealed in this scheme. The government had announced a subsidy of Rs 10,000 crore to increase their sales, but the manufacturers took advantage of the unclear guidelines and took advantage of three and a half times the subsidy by selling half the scooters as per the target.
After the internal investigation of the Ministry of Heavy Industries, there are indications that there is a delay in bringing FAME-3 because irregularities have been found in FAME-2. FAME-2 scheme was implemented in March 2019, with the target of incentivizing 7,090 e-buses, 5 lakh e-three wheelers and 10 lakh two-wheelers, but the target was also not met and more money was spent from the government treasury. also left.
Government is collecting additional subsidy
The government is recovering additional subsidy from manufacturers making irregularities in the Fame-2 scheme. The government has also blacklisted many such companies, whose total market share is more than 37%. In such a situation, if FAME-3 scheme is introduced then a large part of the manufacturers will not be able to participate.
This is how companies messed up
Under the FAME-2 scheme, a plan was made to give subsidy to low-cost vehicles instead of high-cost vehicles. The aim was to benefit such e-scooters whose ex-factory price is up to Rs 1.5 lakh. Battery was considered the parameter to decide the amount of subsidy. It was decided that a subsidy of Rs 10,000 per kilowatt battery would be given and it should not exceed 15% of the ex-factory price. Emphasis was also laid on indigenization and local manufacturing in the scheme, but clear guidelines were not fixed for this.
In the FAME-2 scheme, which will be applicable for three years, the target of 10 lakh two-wheelers was increased to 15 lakh. After the end of the scheme period, subsidy could be given only on 7 lakh electric two-wheelers. A total of Rs 2000 crore was to be given but subsidy of Rs 3211 crore was given, which was 60% more than the target.
Three times more subsidy withdrawn
Under the FAME-2 scheme, a maximum subsidy of Rs 12,903 per vehicle was to be given, but some companies took subsidy up to Rs 44,653. This subsidy was determined on the basis of the capacity of the battery, in which subsidy was to be given at the rate of Rs 10,000 per kilowatt. Along with this, special care was also to be taken that the ex-factory price should not exceed Rs 1.5 lakh.
Impact on future FAME-3 plan
After the revelations of corruption and rigging in the FAME-2 scheme, there is a delay in the implementation of the FAME-3 scheme. Under the policies proposed for FAME-3, companies will be strictly scrutinized and they will be monitored more closely. At present, two major companies have been blacklisted, if FAME-3 scheme is brought, then these companies will not get its benefits. The government is now making efforts to recover additional subsidy, so that the irregularities in this scheme can be rectified and this does not happen again in future.
Tags: Auto News, Electric Vehicles
FIRST PUBLISHED : September 8, 2024, 3:34 PM IST
