The Government stopped Okinawa and Hero electric FAME-II subsidy due to violating rules

The Government has stopped Okinawa’s and Hero’s FAME-ll subsidy due to violation of subsidy rules. Last year the government served this notice to both companies. As per PTI report, both two companies misused the FAME-II rules and misappropriation of subsidies under Rs 10,000 crore FAME scheme.

You are planning to buy an electric scooter like the Okinawa and Hero, then you should know the subsidies availability. Recently, the Government of India has stopped the FAME-II subsidy. Last year, the electric two wheelers companies Hero and Okinawa misused the rule and claimed Rs 10,000 crore under this scheme. 

To claim this subsidy, the company should make 50 percent components in India. But both companies are using imported components and passed it as locally sourced components to claim the subsidy.

On December last year, the Union Heavy Industries Minister, Mahendra Nath Pandey was unveiled first. He put a bulk of allegations on Okinawa and Hero companies. Both the companies violated the Phased Manufacturing Programme (PMP) guideline set under the FAME-II scheme. 

Read more:Hero Launched Optima CX 2.0, Optima CX 5.0, NYX under Rs 1.30 lakh

Here the list is end with two, there are ten other electric two companies that are-Okaya EV, Jitendra New EV Tech, Electric Mobility, Revolt Intellicorp, Kinetic Green Energy, Avon Cycles, Lohia Auto industry, Thukral Electric bikes and Victory Electric Vehicles International. 

The Government has stopped Okinawa and Hero electric subsidy for violating FAME-II rules
The Government has stopped Okinawa and Hero electric subsidy for violating FAME-II rules

The Okinawa and Hero electric subsidy is stopped right now and under the Govt scanner. The government also said that the company need to submit proper evidence to open the subsidy in future. 

The  government has announced subsidy for one million electric two wheelers, 5 lakh three wheelers 55,000 of hour Wheelers and 7000 of e-bushes for five years from April,19 under the FAME-ll scheme.

Read more:Okinawa achieved 2.5 lakh electric scooters sale milestone in March 2023

Right now, there are about 8 lakh electric two wheelers, 81,000 four wheelers and 2,435 e-bushes has claimed their subsidy. 

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