SMEV Drafts new Solution To End FAME Dues Deadlock

Mobility Outlook Bureau
28 Jul 2023
05:48 PM
1 Min Read

The proposal advocates seeking recovery of subsidies from customers as a means to solving the problem.


The association has said that following discussions with EV makers, especially those worst hit, an unusual but obvious  solution has emerged. The OEMs have come around to accepting it as the best under the circumstances.

This was confirmed after some of them collectively wrote to the newly appointed Honorary Chief Evangelist of SMEV, Sanjay Kaul, seeking a consensus on practical solutions that work for all.

The proposal draws upon the earlier move made by the Ministry of Heavy Industries (MHI) on four OEMs accused of overcharging customers an were directed to return the overcharged sums.

Also Read: Fame II Subsidy Slashed To 15% From 40% For E2Ws

Taking a cue from that instance, SMEV has proposed that since OEMs have passed on subsidies -- which MHI has later deemed unpayable to them -- they should be allowed to recover these from customers. This money can them be remitted to the MHI.

“It is to be noted that the department levied a penalty on some OEMs a few months ago for overcharging the customers and then asked them to return the amounts. It is possible that the monies that MHI is demanding from the other set of OEMs for non-compliance, can be similarly recovered by them from the customers and returned to the Department,” states the letter.

It goes on to add, “Since the MHI is suggesting that the subsidies passed on to customers by OEMs now stand cancelled, due to technical reasons decided by MHI subsequently, the customers who have taken such subsidies can be asked to return these to OEMs in all fairness.”

The manufacturers have indicated a willingness to share customer data with the Department. They are also open to taking out a public notice asking such customers to deposit back the excess rebates they had received as subsidies under the Department’s guidance.

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