Hero Electric, Okinawa Autotech, and Benling India, three popular electric two-wheeler manufacturers, might be facing a ban from future government schemes that promote electric vehicles (EVs). This comes after the companies failed to return benefits they received under a government program for not following the program’s rules.
The program in question is called FAME-II, which stands for Faster Adoption and Manufacturing of Electric Vehicles. This program offered financial support to companies that make electric vehicles in India. But there were conditions attached to this support. One important rule was that companies had to use parts made in India for their electric vehicles. This is to boost domestic manufacturing and create jobs in India.
Here’s what happened: In 2022, the government received complaints that some companies registered under FAME-II were not following the rules. They were accused of using parts imported from other countries instead of parts made in India, even though they claimed the benefits for using local parts.
The Ministry of Heavy Industries investigated these complaints and found that six companies had broken the rules. Three of these companies were Hero Electric, Okinawa Autotech, and Benling India. The government asked these companies to return the benefits they had wrongly received.
However, Hero Electric, Okinawa, and Benling did not give back the money. As a result, they were de-registered from the FAME-II scheme, which means they can no longer get any benefits under that program.
But there might be even bigger trouble for these companies. Because they didn’t follow the rules and didn’t return the money, the government is now considering blacklisting them from all future central government schemes. This means they wouldn’t be eligible for any kind of financial help or support from the government, not just for electric vehicles but for any other business they might be involved in.
It’s important to note that Okinawa Autotech was not yet debarred from all government schemes because they had challenged the decision in court at the time. However, they could still face blacklisting if the situation doesn’t get resolved.
This is a serious situation for these three companies. Government support is crucial for the electric vehicle industry in India, especially for new companies. Being blacklisted from all government schemes would make it very difficult for them to compete in the market.
This incident also highlights the importance of following rules and regulations. The government provides financial help to encourage businesses to operate in a way that benefits the country. If companies don’t follow the rules, they risk losing those benefits and facing even stricter consequences.