EV makers affected by FAME subsidy block see cumulative damage over Rs 9,000 crore, SMEV proposes sinking fund to help revive industry
The Society of Manufacturers of Electric Vehicles (SMEV) has released what it says shows a grim highlight of a cursory audit on behalf of 7 electric two-wheeler manufacturers affected by the Ministry of Heavy Industry’s decision to block FAME 2 subsidies.
The audit by SMEV’s chartered accountants indicates the total cumulative damages to affected companies could account for over Rs 9,000 crore on a conservative basis.
This cumulative loss are on account of unpaid dues, interest, debt, loss of market share, reputational loss, cost of capital and potential recapitalisation, to approximately Rs 9,075 crore ever since the Heavy Industry held up their subsidies since 2022.
