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1200 crore ‘loan’ on the government! EV companies worry, ‘How to grow business without money?’

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On the one hand, the Government of India is making every possible effort to promote EV ie Electric Vehicle, while on the other hand shocking news is coming out regarding the subsidy of Electric Vehicle. SMEV i.e. Society of Manufacturers of Electric Vehicles recently said in a note that the Ministry of Heavy Industries (Ministry of Heavy Industries) has wrongly informed that they have set a target of 10 lakhs to meet the April 2023 target. Electric Subsidized two wheelers.

SMEV said that the information given by the government is wrong and it happened due to accounting error and it is a very serious matter. What is SMEV? This question must be arising in your mind that what is this, for the information of the people, let us tell you that most of the major EV manufacturers are included in SMEV.

SMEV has claimed in a petition filed in the Parliamentary Standing Committee, citing auditors it regularly consults, that the MHI figures on the FAME II target are incorrect. This is because the vehicles whose sales are included in these figures were not funded under the scheme.

Manufacturers paid 1400 crores from pocket

The Society of Manufacturers of Electric Vehicles had informed last week itself that the government owes subsidy of about Rs 1,200 crore to the Original Equipment Manufacturer ie OEM. When the manufacturer did not get the subsidy money from the government, he paid this money from his own pocket.

The delay in getting the subsidy amount from the government is making things financially difficult for the manufacturers. If we talk about the figures of the last 15 months, then in the last 15 months, the original equipment manufacturer has given a subsidy of Rs 1400 crore to the customers from its own pocket.

4.5 lakh people did not get subsidy

The Society of Manufacturers of Electric Vehicles recently gave such information which can surprise anyone. Out of 9 lakh 60 thousand electric two wheelers sold between April 2019 to April 2023, 4 lakh 50 thousand two wheeler owners have not received the subsidy till now.

In such a situation, SMEV raised the question that when the Ministry of Heavy Industries has not yet released the subsidy for these two wheelers, then why have they been included in the accounting?

It is being said that if the government does not do this, then it is clearly visible that there is a decrease of up to 50 percent in the sales of electric vehicles. The ministry does not want to create this image of itself or say that the government is trying to cover up this serious situation.

The government defaulted on the obligation, so the manufacturers had to take loans

SMEV issued a second note in two weeks stating that the government is not fulfilling its promises made for FAME II, due to which OEMs (Original Equipment Manufacturers) are having to struggle a lot. The government is not fulfilling its obligation due to which the manufacturers have to borrow to pay the subsidy.

It is also mentioned in the note that the subsidy of Rs 1,200 crore has been given by the OEMs to the customers. That was actually to be given by the government under the FAME II subsidy scheme of the government which is privately financed by the manufacturers.

These companies are included in SMEV

For the information of the people, let us tell you that it includes many electric vehicle manufacturing companies such as Hero Electric, Kinetic, Yulu, Piaggio Vehicles India, Lohia. Along with this, companies making EV components such as Tata Chemical, Sun Mobility and Exicom and GAIL etc. are included.

Mentioning that the subsidy has been withheld by the government for non-compliance of localization norms, SMEV said that almost all manufacturers have suffered losses in one way or the other. SMEV says that if the target of 50 percent fails, then either the department should accept that the target has failed because of them or pay the wrongly withheld subsidy.

Government and EV companies will have to work together to find a solution

In such a situation, the need of the hour is that the government and the industry should sit down and work together to find a solution to this issue so that the EV target can be met once again and India can be brought back on track in the EV segment. Can go

Why 2023 is challenging for the industry?

2023 is a challenging year for the electric vehicle industry as the industry has been in turmoil for the past two years due to COVID and then the delay in subsidy for 12 months.

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