Like many others, Greaves Cotton has been riding on the EV boom; through it’s subsidiary Greaves Electric Mobility (GEM).
Now, Government through Ministry of Heavy Industries (MHI) vide its letter dated 25th May 2023, has alleged that GEM failed to adhere to Phased Manufacturing Programme Guidelines. Consequently –
- It has proposed to deregister GEM from FAME India Scheme Phase II; and
- Has also directed GEM to refund all the incentives claimed (approx. Rs 124 cr along with interest) under the said scheme back to the MHI
The subject action by the government is part of a wider crackdown on the Indian two wheeler EV industry that tried to take advantage of the incentives offered under the FAME scheme. The whole idea of the scheme was to develop the local technology and supply chain around the EV industry. However, many of the players hardly developed any local technology or supply chain and have been solely relying on the imported CKDs.
GEM has also been alleged to be adhering to the similar practices.
The Company on it’s part has neither denied nor accepted the allegation so far and intends to engage with the government to resolve the matter.