Hero Electric has requested assistance from the Ministry of Heavy Industries to address ongoing conflicts and expedite the release of delayed EV subsidies. The company, which has been identified as non-compliant with the localization requirements of FAME II, is prepared to accept penalties and has proposed several resolution methods, such as third-party audits and mediation.
Hero Electric has reached out to the Ministry of Heavy Industries (MHI) to resolve existing disputes and secure the release of outstanding electric vehicle (EV) subsidies, according to officials. The electric two-wheeler manufacturer has consented to pay penalties for any non-compliance or violations.
A senior government official disclosed that Hero Electric approached them to resolve their pending issues, and they are currently reviewing the company’s request. Naveen Munjal leads Hero Electric, which was a participant in the MHI’s Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) program. The company, along with five other participants, was later found to have breached the mandatory localization norms, leading to governmental scrutiny and actions.
Following an investigation, the government demanded a refund of subsidies from these EV manufacturers, accusing them of improper claims. While three companies have returned their subsidies, Hero Electric has disputed these allegations. It has also demanded the release of INR 556 crore in subsidies, which it claims are due for sales already completed, and has pursued legal actions to enforce this.
In response to these issues, the Centre has asked Hero Electric to repay INR 133 crore along with penalty interest, citing violations of the FAME II norms.
Hero Electric has recently initiated a new dialogue with the Centre, proposing a settlement for the disputes.
The government official mentioned that Hero Electric has proposed six solutions to resolve the conflict, including fines, subsidy adjustments, third-party re-investigations, mediation, re-testing of vehicles, and facility inspections. The company is also open to any other corrective measures the ministry might suggest.
Hero Electric has not responded to inquiries about these developments. Following FAME II, the Electric Mobility Promotion Scheme (EMPS) came into effect, which later merged into the PM E-DRIVE scheme. Hero Electric was also disqualified from participating in any subsequent schemes.
Additionally, the company has requested the removal of its blacklisting and sought permission to access the National Automotive Board (NAB) portal to process its pending subsidies.
