The FAME 2 scheme has been in the eye of a storm with alleged violations by 6 electric vehicle makers to meet the norms and claim subsidy, but Akhila Balachandar, CFO, Greaves Cotton, is optimistic about a positive resolution of the conflict.
In a recent interaction with Financial Express Online, Balachandar discussed a range of topics right from her previous experiences, expectations, opportunities and plans for Greaves Cotton. You can read the interview here.
What’s more the finance veteran believes that “every regulatory change has its own teething problem and I think the government has been fairly positive in resolving most of the issues which got represented in a fair manner.”
For the unversed, the FAME 2 Scheme was introduced by the government of India in 2019, which carried forward the idea to drive manufacturing and adoption of electric vehicles in India. You can read all about it here.
For over a year, there have been some issues between the Ministry of Heavy Industries (MHI) and electric vehicle manufacturers, on the alleged violation of localisation norms by 6 EV makers – Revolt Intellicorp, Hero Electric, Okinawa Autotech, Greaves Electric Mobility, Benling India, Amo Mobility and Lohia Auto. While some EV makers have started paying penalties, some are in active discussions and some are looking to challenge the same. The idea is to find a middle path to resolve the issue or it could end up sabotaging the progress made by the EV ecosystem say experts.
An optimistic Balachandar says that Greaves Cotton is “completely complying with the government’s requirements. All the notices have been responded to well in time. We have given them whatever they’ve asked for. I’m sure that both the government and all the industry is very keen to have it resolved because this is a very important aspect even from the government’s agenda to move to the non-fossil fuel means of transport. We have had multiple meetings and I think we should see resolution at an earlier point in time.”
