MHI's Latest Actions Collapse The FAME 2 Scheme: CBITA

CBITA (Centre for Business, Industry and Trade Advocacy) has filed a petition to the parliamentary standing committee on Industry stating that the latest actions by the Ministry of Heavy Industries has collapsed the entire FAME 2 Scheme.

The petition states that the Four years of FAME 2 achieved nothing except a bad name.

Read the entire petition below:-

"The Department responsible for launching India’s E-Mobility thrust has almost accepted that it has done nothing for the sector – if you go by their latest set of actions.

Anyone following the complete mess in the EV sector since April 2022 cannot but be severely disappointed at the way things have gone.

What began as a witch-hunt in April 2022 against OEMs in the EV sector – mainly pioneering start-ups - based on a series of libellous emails sent from an anonymous handle has now turned into a convoluted financial and regulatory mess involving almost all stakeholders in the sector. 

After being questioned from all sides for letting the entire policy be torn to shreds, the MHI has decided that the best course of action would now be – to not only not return the subsidies owed to OEMs since last 18 months and what has all but crippled them – but also ask back the subsidy provided to them on a much earlier period!

In effect, it would effectively be withdrawing almost the entire budget it had earmarked for the scheme since 2019. 

This brings into question the very purpose of the MHI and the FAME 2 policy: What did the MHI achieve in the last four years of the FAME 2 Policy? It seems the Ministry is rather happy to say – nothing, except a bad name."