Action: Hero Electric and Benling will be out of incentive scheme, both companies took subsidy wrongly

Electric two-wheeler makers Hero Electric and Benling India have been barred from participating in any government incentive scheme in future. Both have been excluded from all schemes of the Ministry of Heavy Industries for two years. Both have not returned the subsidy given in the second phase (FAME-2) of the ministry’s plan to accelerate the manufacturing of electric vehicles.

According to government officials, investigation has revealed that both the companies have violated the phased manufacturing program. The government is demanding return of Rs 200 crore from these two companies which have not returned the subsidy. The ministry had removed all the violating companies – Hero Electric, Okinawa, Ampere Vehicles (Greaves Cotton), Benling India, Revolt Intellicorp and Amo Mobility from the FAME scheme in May last year. The six companies were asked to return a total of around Rs 469 crore. Among these six companies, Amo Mobility, Greaves Electric and Revolt Intellicorp returned the subsidy amount with interest. But Hero Electric, Okinawa and Benling did not return the subsidy and incentive amount. For this reason their names were removed in October and November. In Fame-2, Hero Electric had claimed subsidy of Rs 133 crore, Okinawa Rs 116 crore and Benling Rs 48 crore.

Okinawa Autotech reached court

Okinawa Autotech is the only defaulting company whose name has not been cut yet. She has reached Delhi High Court.

Hero Electric has also approached the Punjab and Haryana High Court to avoid returning the subsidy. “We will submit a proposal to the Finance Ministry to sideline these companies from all government schemes,” an official said.