These Electric 2-Wheeler Firms Miss Out On New Subsidy Regime, Here's Why

In order to promote the manufacture and use of electric vehicles in India, the government of India introduced the Electric Mobility Promotion Scheme (EMPS) 2024.

It is a Rs 500 crore scheme that provides financial incentives to consumers who purchase electric two- and three-wheelers in the country.

The scheme runs from April 1 to July 31. It is a benefit that is given to the purchaser of the electric vehicle in the form of a reduction in the price of the vehicle. Even though it has been over a month since the launch of the subsidy scheme, certain two-wheeler electric scooter makers have not been successful in getting their subsidy claims.

This is mainly because these companies have been on the radar of the government over alleged misuse of the subsidy under the earlier scheme, FAME II.

It has been found that Hero Electric, Okinawa Autotech, Greaves Electric Mobility Revolt Motors and others have not yet registered under the new Electric Mobility Promotion Scheme (EMPS) 2024.

Under FAME II, subsidies and purchase incentives were offered to these companies. However, in 2022, the ministry had alleged subsidy misappropriation against 13 e2w OEMs and from seven of these manufacturers, it had sought a refund of the subsidy amounts already paid due to alleged violations.

Okinawa was asked to pay Rs 116 crore, whereas Greaves Electric was asked for Rs 124 crore. While many of the companies refunded the subsidy, Okinawa and Hero moved court to challenge the demand of the ministry.

In an interview with ETAuto, many officials from these companies revealed that earlier, the Ministry of Heavy Industries had already absolved them of any wrongdoings after conducting an internal panel. However, the ministry clarified that they had not given any clean chit to any of these companies and said, “Not cleared. It is a false report in the news.”

One of the promoters of these companies has said that they are not registered on the EMPS portal and are going to live without this subsidy, as they feel that this subsidy regime will eventually end sooner or later.