Latest news with #FAME
Mint
8 hours ago
- Automotive
- Mint
Government supports all green mobility, says heavy industries minister Kumaraswamy
New Delhi: Union heavy industries and steel minister H.D. Kumaraswamy has weighed in on the automotive industry's concerns about state governments equating hybrid and electric car incentives, stating that the government continues to support all clean fuel for automobiles. He said the government has incentivized hybrid cars under subsidy schemes such as FAME II, and hybrid ambulances under PM E-drive. In addition, under the PLI-Auto scheme, the government supports all kinds of fuels besides EVs, including CNG, LNG and biofuels. "Under the FAME-II Scheme, EV (electric vehicles) and hybrid version of e-4W was allowed for incentivization. Similarly, in case of PM E-drive scheme, a hybrid version of e-ambulances, that is, electric plug-in hybrid & strong hybrid shall be incentivized," said Kumaraswamy in an email interview with Mint. Also read: Ola Electric's founder Bhavish Aggarwal pays ₹20 crore to top up collateral as shares slide "Further, besides EV, the government supports all kind of fuels viz. CNG, LNG, and bio-fuels under the PLI Auto Scheme," he added. FAME, or Faster Adoption and Manufacturing of Electric (and Hybrid) vehicles scheme, ran for two iterations from FY15 to FY19, and from FY20 to FY24. Currently, the PM E-drive scheme has replaced the FAME schemes. Under all these schemes, consumers could purchase electric vehicles at a subsidized price. The government then reimbursed manufacturers the difference. PLI-Auto is a ₹25,938-crore production-linked incentive scheme for automobiles and automotive components, announced in 2021. It provides incentives to automakers to manufacture vehicles that run on green fuel. Mint reported on 29 May that leading electric car makers Tata Motors Ltd, Mahindra and Mahindra Ltd and Hyundai Motor India Ltd are up in arms over the Delhi government's draft paper proposing equal incentives for hybrid cars and electric vehicles. On the issue of supply disruptions of rare earth magnets from China, the minister said the automotive industry has sought help from MHI, and that "MHI and the government of India" are actively working with industry stakeholders to understand the issue and find solutions. Kumaraswamy also said battery makers in the country have faced hurdles in meeting timelines under the production-linked incentive scheme for advanced chemical cells (PLI-ACC) due to unavailability of technology, skilled manpower, and upstream components, besides challenges in importing essential equipment and machinery. He clarified however, that by 2030, India will have indigenous ACC capacity of over 100 gigawatt-hours. Also read: Rahul Jacob: Manufacturing is crying out for a reality check "However, with support and hand holding M/s Ola Cell Technologies Private Limited (OCTPL) has reported successful installation of 1.4 GWh capacity," said the union minister. "Apart from the PLI beneficiary firms more than 10 companies have already started setting up cell manufacturing unit for more than 100 GWh capacity," he added. The problem echoes similar challenges faced by India's PLI scheme for solar modules, as Mint reported on Monday. The ₹18,100-crore PLI-ACC scheme was introduced in May 2021 to incentivize setting up of 50 gigawatt-hours of battery storage capacity. Three companies -- Rajesh Exports Ltd, Ola Electric Mobility Ltd, and Reliance Industries Ltd -- have been awarded 40 gigawatt-hour of storage capacity till date. This means the companies will receive benefits to set up every unit of battery capacity. Indian manufacturers are capitalizing on the heightened demand for cell components like Cathode active materials, Anode active material, aluminium and copper foils, with many companies setting up component manufacturing units in India to achieve higher value addition and strengthen supply chains. The ministry of heavy industries, which is also the nodal ministry for the PLI-Auto scheme, is expecting claims worth about ₹2,000 crore from the industry in FY26. Under the scheme, manufacturers have to claim incentives for the sales of zero-emission vehicles or other eligible components achieved in a fiscal year, in the following year. For instance, benefits for FY25 sales under the PLI-Auto scheme will be claimed and disbursed in FY26. Also read: India bulks up its drugs PLI scheme in renewed pushback against Chinese imports The expectation for FY26 claims come after a disbursal of ₹322 crore in FY25 to four manufacturers. This time, the minister said the government was expecting nine manufacturers to claim incentives under the PLI-Auto scheme. "Disbursal of incentive under PLI Auto is expected to increase over the years as the number of applicants achieving DVA certification increases as applicants are able to achieve localization as per scheme guidelines. Further, the applicants are expected to achieve DVA certification for more number of AAT products and variants. As more number of OEMs are likely to achieve DVA under the scheme in the coming years, the disbursal will rise in coming years," said Kumaraswamy. In FY26, state-run Bharat Heavy Electricals Ltd (BHEL) will aim to increase its revenue by 20-25% and double it's profits on the back of its existing orderbook of Vande Bharat trains, navy gun mounts, transmission lines, coal gasification projects, and boilers, the minister said. "In the current fiscal, BHEL is focused on consolidating project execution before expanding into newer domains," said the minister. 'We want BHEL to focus on delivery discipline first. Diversification into non-power sectors rail transport, defence systems, transmission and coal gasification will continue, and in some years, will contribute significant percentage of revenue." BHEL is also set to become the nodal agency for demand aggregation of electric vehicle charging infrastructure, and will develop an application to facilitate charging services, Mint reported on 21 May. On 2 June, the ministry notified the guidelines for the scheme to promote the manufacturing of electric passenger cars in India (SPMEPCI), which was launched in March 2024. The scheme allows foreign electric carmakers to import completely built-up units of their vehicles at a reduced import duty, in exchange for investing at least ₹4,150 crore towards manufacturing electric cars in India. They will be allowed to import 8,000 cars every year for five years at an import duty of 15%, as opposed to the 70% levy on imports otherwise. But electric carmakers have to achieve localization of 25% in three years, and 50% localization in five years to qualify for benefits under the scheme. Investments also have to be made in plant and machinery, electric vehicle charging systems, or research and development. American electric vehicle maker Tesla Inc. has not shown interest in the scheme yet, Kumaraswamy had said on 2 June in a press conference. But other manufacturers including Mercedes Benz, Hyundai, Kia, and Skoda-Volkswagen had shown interest in the scheme, he said.
Mint
29-05-2025
- Automotive
- Mint
Hero Electric: Amid insolvency proceedings, ministry seeks to recover Rs167 crore subsidy
New Delhi: The heavy industries ministry has sought to recover ₹ 167 crore given as subsidy to Hero Electric Vehicles Pvt. Ltd, according to two people aware of developments in the electric two-wheeler maker's insolvency proceedings. The ministry last year accused Hero Electric and a few other electric vehicle manufacturers of fraudulently claiming subsidies under the second iteration of the government's Faster Adoption and Manufacturing of Electric and Hybrid vehicles (FAME 2) scheme, and sought to recover the money. In January this year, a month after the National Company Law Tribunal directed initiation of insolvency proceedings against Hero Electric, the ministry approached the interim resolution professional appointed to oversee the company's operations to recover the subsidy, according to the two people above. Hero Electric is accused of violating the FAME 2 scheme's localisation rules, which require companies to manufacture a certain portion of their electric vehicles in India to be eligible for the subsidy. 'This move is a big signal to the EV industry: government subsidies come with accountability,' said Randheer Singh, chief executive officer, ForeSee Advisors, and former director at NITI Aayog. 'For other companies in the EV space, it's a reminder that subsidies are not free money—they're performance-linked and tightly audited. Any mismatch in documentation, eligibility, or delivery can come back later with serious financial and legal consequences,' he said. Singh added that a ministry claiming recovery during a company's insolvency proceedings was not routine, but not unprecedented either. Ministries or government departments can and do file claims as operational creditors when subsidies, taxes, or dues are unpaid, he said. The ministry of heavy industries and Hero Electric's managing director Naveen Munjal did not reply to queries emailed on the evening of 28 May. Hero Electric is under scrutiny for other potential violations as well. The Serious Fraud Investigation Office (SFIO) is investigating claims that Hero Electric used imported Chinese parts in its vehicles, which violates the FAME schemes' phased manufacturing programme that specifies components EV manufacturers are allowed to import. On 2 December, SFIO searched the offices of Hero Electric, Benling India Energy and Technology Pvt. Ltd, and Okinawa Autotech International Pvt. Ltd following accusations that these companies fraudulently availed subsidies amounting to Rs. 297 crore cumulatively under the FAME 2 scheme, as per a statement from the ministry of corporate affairs. Following this, Hero Electric approached the Delhi High Court for relief but on 20 December the court ruled that the SFIO probe could continue. Days later, Metro Tyres Ltd, an operational creditor of Hero Electric, filed an insolvency plea against the EV two-wheeler maker over unpaid dues of about ₹ 1 crore. As on 28 April, claims worth a little over ₹ 535 crore have been admitted against Hero Electric, as per information provided by the Insolvency and Bankruptcy Board of India. IBBI filings show that about ₹ 177 crore worth of claims were contingent, and claims worth ₹ 329 crore were not admitted.
Mint
29-05-2025
- Automotive
- Mint
Hero Electric: Ministry joins insolvency proceedings to recover Rs167 crore subsidy
New Delhi: The heavy industries ministry has sought to recover ₹ 167 crore given as subsidy to Hero Electric Vehicles Pvt. Ltd, according to two people aware of developments in the electric two-wheeler maker's insolvency proceedings. The ministry last year accused Hero Electric and a few other electric vehicle manufacturers of fraudulently claiming subsidies under the second iteration of the government's Faster Adoption and Manufacturing of Electric and Hybrid vehicles (FAME 2) scheme, and sought to recover the money. In January this year, a month after the National Company Law Tribunal directed initiation of insolvency proceedings against Hero Electric, the ministry approached the interim resolution professional appointed to oversee the company's operations to recover the subsidy, according to the two people above. Hero Electric is accused of violating the FAME 2 scheme's localisation rules, which require companies to manufacture a certain portion of their electric vehicles in India to be eligible for the subsidy. 'This move is a big signal to the EV industry: government subsidies come with accountability,' said Randheer Singh, chief executive officer, ForeSee Advisors, and former director at NITI Aayog. 'For other companies in the EV space, it's a reminder that subsidies are not free money—they're performance-linked and tightly audited. Any mismatch in documentation, eligibility, or delivery can come back later with serious financial and legal consequences,' he said. Singh added that a ministry claiming recovery during a company's insolvency proceedings was not routine, but not unprecedented either. Ministries or government departments can and do file claims as operational creditors when subsidies, taxes, or dues are unpaid, he said. Hero Electric is under scrutiny for other potential violations as well. The Serious Fraud Investigation Office (SFIO) is investigating claims that Hero Electric used imported Chinese parts in its vehicles, which violates the FAME schemes' phased manufacturing programme that specifies components EV manufacturers are allowed to import. On 2 December, SFIO searched the offices of Hero Electric, Benling India Energy and Technology Pvt. Ltd, and Okinawa Autotech International Pvt. Ltd following accusations that these companies fraudulently availed subsidies amounting to Rs. 297 crore cumulatively under the FAME 2 scheme, as per a statement from the ministry of corporate affairs. Following this, Hero Electric approached the Delhi High Court for relief but on 20 December the court ruled that the SFIO probe could continue. Days later, Metro Tyres Ltd, an operational creditor of Hero Electric, filed an insolvency plea against the EV two-wheeler maker over unpaid dues of about ₹ 1 crore. As on 28 April, claims worth a little over ₹ 535 crore have been admitted against Hero Electric, as per information provided by the Insolvency and Bankruptcy Board of India. IBBI filings show that about ₹ 177 crore worth of claims were contingent, and claims worth ₹ 329 crore were not admitted. The Hero Electric insolvency case is currently in the claim evaluation stage, IBBI filings show. Hero Electric's resolution professional will receive expressions of interest in the insolvency resolution till 12 June and a list of prospective resolution applicants will be published on 7 July. The last date for submission of resolution plans is 11 August.
Hindustan Times
29-05-2025
- Automotive
- Hindustan Times
This state has maximum number of registered electric vehicles in India. Know more
Uttar Pradesh has 4.14 lakh registered electric vehicles, a significant higher number than Delhi and Maharashtra. Uttar Pradesh has 4.14 lakh registered electric vehicles, significantly higher than Delhi and Maharashtra. (Getty Images via AFP) Check Offers Uttar Pradesh has the maximum number of registered electric vehicles in India. The state currently has 4.14 lakh registered electric vehicles, surpassing even Delhi and Maharashtra. While Delhi has 1.83 lakh registered EVs, Maharashtra has 1.79 lakh. The electric vehicle population in these states are majorly driven by the EV policies of the respective states as well as the central government's FAME schemes. PTI has reported that Uttar Pradesh has also emerged as the biggest beneficiary of the Centre's FAME I and FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India) schemes, further bolstering its electric mobility efforts. The UP government launched its dedicated Electric Vehicle Manufacturing and Mobility Policy 2022, aimed at accelerating the adoption of EVs and building a robust charging infrastructure. With this EV policy, the UP government aims to attract an investment inflow of ₹ 30,000 crore and create 10 lakh jobs in the electric mobility sector. Also Read : Upcoming cars in India The report further states that e-rickshaws have been driving the growth of electric mobility in the state, accounting for 85 per cent of the electric vehicle sales in Uttar Pradesh. Recently, the UP government said it has approved the installation of over 300 new EV charging stations across 16 municipal bodies. Ayodhya, a rapidly growing tourist destination, is expected to see the highest number of new electric vehicle charging points. The state government has also prioritised the development of additional electric vehicle fast charging stations and the upgrading of existing facilities, claimed the report, while also stating that India currently has around 33,000 EV chargers, of which 35 per cent are fast chargers. According to a study by Alvarez & Marsal, India could have 102 million electric vehicles on the road by 2030, becoming a major player in the global electric mobility map. It also claims that the current EV-to-public charge ratio in India stands at 135, which is far above the global average of 6-20. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 29 May 2025, 07:17 AM IST
Mint
25-05-2025
- Automotive
- Mint
E-buses under PM E-drive to be used now for intercity, tourist travel
Inter-city routes and tourist trails may open up for electric buses which are now confined to cities under a central scheme, two people familiar with the plans said. The ₹10,900-crore PM E-Drive scheme rolled out in September 2024 to expand city transport may soon be expanded for this purpose, the people said on the condition of anonymity. On Friday, the government allotted 10,900 buses under the scheme, which aims at a total of 14,028 buses. 'The allotment announced on 22 May will first be tendered, followed by demand generation and tendering of more electric buses to remaining cities," one of the two people cited above said. 'Then more buses will be deployed for intercity purposes, and for some tourist destinations, for instance, hilly areas." The plan to permit electric buses for intercity travel and tourism purposes will be implemented after the competitive bidding for all cities is completed, the officials mentioned above said. Also read | Govt rushes to find demand for electric trucks under PM E-Drive after bare FY25 Under the scheme, nine cities with over 40 million people are eligible to receive subsidized e-buses, including New Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, Ahmedabad, Surat and Pune. On 22 May, heavy industries minister H.D. Kumaraswamy said Bengaluru will get 4500 electric buses, Hyderabad 2,000, Delhi 2,800, Ahmedabad 1,000, and Surat 600, in the first phase. Tendering of the first phase of buses allotted on 22 May will begin in 4-6 weeks, the second official said. Competitive bidding for the supply of the first phase of buses allotted on 22 May will begin in 4-6 weeks, the second official said. Incentives for each bus sold Typically, the cost of an electric bus is approximately ₹1 crore. Under the PM E-drive scheme, the Centre is planning to dole out a ₹20-35 lakh incentive for every electric bus sold. The development assumes importance as nearly 40% of the scheme is set aside for the rollout of 14,028 electric buses till FY26. Transport-related emissions in cities and along highways currently account for 10-15% of the pollution in our cities, said Viral Thakker, partner & leader - sustainability & climate, Deloitte South Asia. Also read | ARAI likely to plan division of auto testing agencies allocation 'There are several advantages of using buses for intercity travel - a large and efficient network of buses can replace cars and provide alternative transportation options to passengers. Electric buses are also a good addition to tourism locations as India looks to develop a number of sustainable tourism destinations," said Thakker. Subsuming schemes The PM E-drive scheme, announced in September 2024, subsumed the Electric Mobility Promotion Scheme (EMPS), which ran from April 2024 to September 2024. The EMPS and PM E-drive scheme came after a decade of electric mobility incentivization under two iterations of the FAME scheme. FAME stands for Faster Adoption and Manufacturing of Electric (and Hybrid) vehicles. The PM E-drive scheme, set to run for two years till the end of FY26, marked a change in the focus of incentivisation of electric mobility, as it focused on incentivising public transportation to become electric, along with a focus on sunrise sectors such as electric trucks and ambulances. It also incentivised electric two-wheelers and three-wheelers. The scheme mandates manufacturers to provide electric vehicles to consumers at a lower price. The government then reimburses manufacturers. Also read | More than 6 lakh electric 2, 3-wheelers sold under PM E-Drive scheme since April While electric two- and three-wheelers under the scheme are given direct incentives on purchase, the procedure to incentivize electric buses is little more complex. First, the government gathered demand for electric buses from state governments. After this, it finalized allocation to each city mentioned in the scheme. The next step is to conduct competitive bidding for such buses, where state transport utilities would bid for such buses and secure them at affordable rates.
