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New Delhi: Electric vehicle industry body SMEV on Tuesday appealed to a parliamentary panel to direct the government to release pending subsidy of Rs 1,200 crore earmarked for the liquidity-hit sector. In a petition to the Parliamentary Standing Committees on Industry and Estimates, the Society of Manufacturers of Electric Vehicles (SMEV) said that the pace of EV adoption is slowing due to the financial stress faced by the industry.
The industry body said that the EV segment has been beset by bottlenecks designed to vitiate the pace of the FAME 2 plan.
“Now that the country is almost ready with the entire supply chain, only Rs 1,200 crore worth of subsidy to the sector has been put on hold, causing a severe liquidity crunch in the industry,” it said.
The petition states that the need of the hour is for the government and industry to work together to resolve the issues and bring India back on track to meet its electric mobility goals.
In December last year, Union Heavy Industries Minister Mahendra Nath Pandey informed Parliament that the government was probing 12 automakers for alleged misappropriation of subsidies worth under Rs 10,000 crore. Fame Scheme.
He had said that the complaints received by the government mainly related to violation of the guidelines of Phased Manufacturing Program (PMP) under FAME India Scheme Phase-II.
The Ministry of Heavy Industry is implementing the scheme Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) to promote the adoption of electric/hybrid vehicles in the country.
At present, the second phase of FAME India scheme is being implemented for a period of five years with a total budgetary support of Rs 10,000 crore from 1st April, 2019.
This phase envisages public electrification and shared transport through subsidy for 10 lakh E-2 wheeler (E-2W), 5 lakh E-3 wheeler (E-3W), 55,000 E-4 wheeler (E-4W) passenger cars. Focused on support. , and 7,090 e-buses.
SMEV said that the delay in subsidy proved to be due to malicious emails alleging non-adherence to policy norms with regard to localization targets.
It is stated that embezzlement has been wrongly alleged as the money payable as subsidy has not yet been received by the OEMs while they have passed it on to the customers.
“FY23 has been a challenging year for the industry: firstly, due to the fallout of two years of COVID disruptions, and then, due to a 12-month delay in subsidies,” SMEV said.
SMEV believes the FAME 2 initiative is a path-breaking, pioneering policy framework that has not only opened up the EV sector dramatically, but also has the market ready to take off as a whole – provided certain bottlenecks are resolved Go.
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This news is auto-generated through an RSS feed. We don’t have any command over it. News source: Multiple Agencies: Autocar India, hindustantimes, economic times, autonews
