According to the Times of India, citing government sources, the government has consented to pay over Rs 500 crore in subsidies to electric two-wheeler manufacturers after they agreed to compensate customers for chargers billed separately from the vehicle.
According to the reports, Ola would most likely receive the largest compensation from the Ministry of Heavy Industries—roughly Rs 370 crore. Ather Energy is expected to receive Rs 275 crore, with TVS receiving Rs 150 crore and Hero MotoCorp receiving Rs 28 crore to Rs 30 crore.
In public declarations, Ola and Ather stated that they will follow the directive. While Ola will repay around Rs 130 crore to clients, Ather may refund approximately Rs 140 crore.
The EV two-wheeler manufacturers had invoiced their clients separately for the vehicle and the chargers in order to keep the price below Rs 1.5 lakh—the threshold at which the subsidy no longer applies. The government has delayed the distribution of subsidies to enterprises worth roughly Rs 800 crore.
Separately, according to media sources, two original equipment manufacturers (OEMs)—Hero Electric and Okinawa Autotech—had their subsidies cancelled after investigations indicated that the two OEMs failed to meet FAME II’s localisation criteria. Hero, on the other hand, stated that it had not received any such communication from the government.