Penalties for wrongly claimed subsidies under FAME INDIA Scheme


The Ministry of Heavy Industries (MHI) had received complaints against 17 OEMs under the FAME India Scheme Phase-II the past 18 months mainly concerning two aspects viz. PMP compliance & Breach of Ex-factory price. Further, incentive payments were stopped in case of those complaints wherever detailed investigations were required.

The following steps were undertaken by MHI for investigation of complaints against the alleged Original Equipment Manufacturers (OEMs):

Disbursement of the demand incentives were put on hold
Matter referred to Testing agencies of MHI for detailed investigation
After the examination of reports from testing agencies for the alleged OEMs, it was found that six OEMs were fully PMP Compliant while other seven OEMs have found to be violating PMP norms.

Further, four OEMs have agreed to refund the excess amount for the Breach of Ex-factory price to the customers/purchasers of electric vehicles (EVs).

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