Government reinstates Revolt and Greaves for new EV subsidy schemes

The Indian government on Friday started reinstating incentives to EV companies that were fined earlier for violating localization norms as per the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. Following the update, Revolt Motors and Greaves Electric Mobility (part of Greaves Cotton) are now eligible for the new subsidy schemes. Both of these firms have applied for subsidies under the Electric Mobility Promotion Scheme within a few days of their penalties being washed out.

The Government of India has previously given collection warnings to six EV manufacturers amounting to ₹469 crore for violation of regulations under the FAME-II subsidy.

While Revolt and Greaves have paid back the government ₹170 crore, manufacturers such as Hero Electric and Okinawa Autotech, among others, have in turn moved the court of law challenging the government's claim.

The Heavy Industries Ministry, in March 2024, established the EMPS for the purpose of providing subsidies to 3.72 lakh electric two- and three-wheelers, as the entire auto sector waited for the third subsidy under FAME. Besides, it has increased the public expenditure in budget spending to ₹778 crore to support 5.61 lakh automobiles post the annual budget of 2024.

Official estimates state the government has already received claims for ₹147.32 crore against 1.01 lakh EVs sold under the EMPS for sale that started from April 1st. Among the set of companies already approved for the subsidy under the scheme are Hero MotoCorp, Bajaj, TVS, Ather, Ola, and Kinetic Green.