EV makers mull legal options after Centre withholds FAME subsidies: Report

Electric Vehicle makers, who were benefitting from the Centre’s FAME-II subsidies, now withheld for ‘non-compliance’ are likely to move the court in the matter, according to a report by The Economic Times.

To avail subsidies under the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India Phase-II (FAME-II) scheme, EV makers have to check several boxes, such as localisation of manufacturing parts and caps on retail prices of beneficiary vehicles. However, several EV companies allegedly imported several components, claiming they were locally made to get subsidies. After this, the government withheld the benefits of around 13 companies including Hero and Okinawa, the report said.