Comments
Greaves Electric Mobility Pvt Ltd (GEMPL), the electric mobility division of BSE-listed Greaves Cotton Ltd, has applied for re-certification under the FAME scheme. The company has refunded the entire incentive amount with interest to the Government and seeks to move on.
The Union Ministry of Heavy Industries (MHI) had issued cause notices to seven OEMs -- GEMPL and six other electric two-wheeler makers -- over violations of FAME-II guidelines. They were asked to return subsidies availed under the scheme. Most of the OEMs have agreed to refund the amount .
The subsidy-related issue has impacted GEMPL’s electric two-wheeler sales, since its competitors’ products are supported by FAME incentives.
“In light of our commitment to consumer interests, to avoid protracted litigation, and without admitting to any of the allegations, contentions, or statements made in the notice, GEMPL, on October 27, 2023, offered to amicably resolve and bring closure to the matter. Accordingly, it has refunded to MHI the entire incentive claim of Rs 124.91 crore, along with the accrued interest (Rs 15.07 crore), and without prejudice to our legal rights,” said a company spokesperson.
The company awaits confirmation from the Ministry to withdraw the show cause notice and return to the portal soon.
In addition to paying its dues, the company wrote off accumulated subsidy receivable of Rs 337.34 crore for past years in the September 2023 quarter.
In the electric 2W segment, the company proposes to launch two new products, to expand the existing portfolio of four products. In E3Ws, it is planning to launch three more battery-powered products.
Greaves Electric Mobility sets footprint in Nepal in partnership with Kedia Organisation
“The company has applied for re-certification of the FAME subsidy. While the existing FAME II scheme is expected to end by March 2024, recertification would help the company become eligible for incentive schemes introduced in the future, given that incentive schemes would be extended beyond March 2024. The restoration of subsidy is assumed to be prospective only, according to a report of brokerage house Sharekhan.
Amid several challenges, the company garnered an 8 per cent market share in the electric two-wheeler market (compared with 12 per cent in FY23). .
Electric 2W sales may suffer on Centre’s lower FAME II subsidy ‘shock’
While the FAME II subsidy scheme ends on March 31, 2024, the government has yet to make an announcement or issue any notification on FAME III.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.