OEMS that make Electrical Vehicles (EVS) Violated the Government Phased Manufacturing Plan (PMP)
The government's phased manufacturing plan (PMP), an essential eligibility criterion against which it awards incentives under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme, has been found to have been violated by some original equipment manufacturers (OEMs) of electric vehicles (EVs).
The government's phased manufacturing plan (PMP), an essential eligibility criterion against which it awards incentives under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme, has been found to have been violated by some original equipment manufacturers (OEMs) of electric vehicles (EVs).
The division is now trying to implement a system to increase traceability to the way producers communicate data about the domestic value addition (DVA) of their goods with the federal government. For the OEMs under investigation for these complaints, subsidies have been put on hold. However, the authorities will look into "the basis" of the accusations, and if OEMs can show DVA criterion was followed, the payouts will be released, said the secretary of the department of heavy industries.
Under the FAME-II scheme, the government offers incentives for different types of EVs with an outlay of 10,000 crores in the current phase. The program was extended throughout the past year till March 2024. To be eligible for the consumer demand incentives offered by the program, EV OEMs must adhere to the PMP, which has a localization deadline for certain components that go into an EV. The market value of their vehicles is lowered because of these incentives.
