Greaves Cotton sinks 10% as govt seeks to remove EV arm from FAME-2 scheme
Shares of Greaves Cotton plunged 10 per cent to Rs 133.70 on the BSE in Tuesday’s intra-day trade after the government proposed to de-register the company’s electric vehicle arm Greaves Electric Mobility (GEMPL) from the FAME-II subsidy scheme and directed the firm to deposit around Rs 124 crore of incentive that it previously claimed under the scheme.
The ministry of Heavy Industries (MHI) said that GEMPL failed to adhere to Phased Manufacturing Programme (PMP) guidelines, hence it will need to return the subsidy amount claimed under the FAME-II scheme, along with interest.
According to ICICI Securities, this will negatively impact Greaves Cotton. In FY23, Greaves Cotton’s E-Mobility segment reported revenues of Rs 1,124.3 crore, which grew by 115.3 per cent on a YoY basis.
