New Delhi. To encourage the sale of electric vehicles, the central government implemented the FAME-2 scheme in the year 2019. But now large-scale irregularities have been detected 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 sold half the scooters than the target and took advantage of three and a half times the subsidy.
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. The FAME-2 scheme was implemented in March 2019, in which the target was to promote 7,090 e-buses, 5 lakh e-three wheelers and 10 lakh two-wheelers, but the target was not achieved and more money was also spent from the government treasury.
Government is charging additional subsidy
The government is recovering additional subsidy from the manufacturers who have committed 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 the FAME-3 scheme is introduced, a large number of 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-priced vehicles instead of high-priced vehicles. The aim was to benefit such e-scooters whose ex-factory price is up to 1.5 lakhs. The battery was considered as a parameter to decide the amount of subsidy. It was decided that a subsidy of Rs 10,000 would be given per kilowatt battery and it should not exceed 15% of the ex-factory price. The scheme also emphasized on indigenization and local manufacturing, but clear guidelines were not set for this.
In the FAME-2 scheme, which was to be implemented for three years, the target of 10 lakh two-wheelers was increased to 15 lakh. After the scheme period ended, subsidy could be given on only 7 lakh electric two-wheelers. A total of Rs 2000 crore was to be given but a subsidy of Rs 3211 crore was given, which was 60% more than the target.
Withdrew three times more subsidy
Under the FAME-2 scheme, a maximum subsidy of Rs 12,903 was to be given per vehicle, but some companies took subsidy of up to Rs 44,653. This subsidy was determined on the basis of battery capacity, in which subsidy was to be given at the rate of Rs 10,000 per kilowatt. Along with this, special care was to be taken that the ex-factory price should not exceed Rs 1.5 lakh.
Impact on future FAME-3 scheme
After the corruption and irregularities in the FAME-2 scheme were exposed, the implementation of the FAME-3 scheme is getting delayed. In the proposed policies for FAME-3, companies will be strictly scrutinized and monitored more closely. Currently, two major companies have been blacklisted, if the FAME-3 scheme is introduced, these companies will not get the benefit. The government is now trying to recover the extra subsidy, so that the irregularities in this scheme can be rectified and this does not happen again in the future.
Tag: auto news, Electric Vehicles
first published : September 8, 2024, 3:34 pm IST
