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The government is taking several steps to increase the use of electric vehicles in the country. It was even giving huge subsidies on the purchase of electric 2-wheelers to cars and buses. But a big mess has come to the fore regarding this subsidy of electric 2-wheeler companies. All these companies were taking advantage of government subsidy by telling ‘lies’.
To increase the use of electric vehicles rapidly in the country, the central government had started a fame subsidy of Rs 10,000 crore. For this, electric 2-wheelers companies had to follow certain rules, and in this case, more than half of the electric 2-wheelers have been sold by ‘lying’.
Told a ‘lie’ about localization
To get fame subsidy from the government, electric vehicle companies had to follow the rules related to localization. One of its objectives was also to promote the manufacturing of electric vehicles in the country. However, these companies cheated the government regarding this rule and took advantage of the subsidy.
Automotive Research Association of India (ARAI) An investigation found that most companies imported key parts such as electric motors, controllers and on-board chargers. These companies gave wrong information about purchasing these parts locally along with their vehicles and took advantage of the government subsidy. ARAI investigation found that every second electric 2-wheeler in the country was sold with this fraud.
The government has put on hold the subsidy of about 1400 crores to be given on electric 2-wheelers from April 2022 onwards. While these companies are continuously sending their such vehicles to the government in the list to get subsidy. Now after this investigation, these vehicles have been removed from the list of subsidy.
Ministry reduced the number of vehicles
The Ministry of Heavy Industries reduced the number of vehicles receiving FAME subsidy to 5,64,000. Whereas earlier the number was 9,89,000. The government had set a target of subsidizing 10 lakh electric 2-wheelers in the country by April 2024. The government now gives a subsidy of Rs 10,000 per kilowatt for each new vehicle, which was earlier Rs 15,000 per kilowatt.