In addition, the Center will be able to reclaim subsidies that were obtained outside of the program’s guidelines. In accordance with the regulations, testing agencies will also be able to visit the locations of EV component vendors who supply parts to program participants.
According to a report, a senior official said, “EV parts shall be domestically procured. Some components will require safety testing as well.”
A phased manufacturing program (PMP) for suppliers of EV components will be part of the system. According to the report, this program, which treats assembly as a manufacturing process, will start on April 1, 2025.
The announcement coincides with an increase in EV sales nationwide due to state and federal government backing as well as falling prices. The union cabinet last month approved the PM E-DRIVE program, which is a step toward increasing the adoption of EVs.
The programme, which has a budget of INR 10.900 Cr, would support local production, strengthen charging infrastructure, and give manufacturers incentives in an effort to promote EVs over a nearly two-year period.
The most recent development also follows several problems with the FAME-II EV promotion program. The Center discovered that EV manufacturers, including Ola Electric and Hero Electric, among others, have taken advantage of subsidies against the localization and other FAME-II criteria. The government fined several of these corporations in addition to asking them to refund the subsidies.
