As the Indian EV makers --- Ola Electric, Ather, TVS Motors, Hero Electric starting agreeing to refund consumers for EV chargers, which they charged seperately, the Indian government has reportedly decided to release over Rs 500 crore subsidy under FAME II scheme to for leading EV makers --- Ola Electric, Ather, TVS, and Hero MotoCorp.
According to an ET report, Ola Electric, led by Bhavish Aggarwal, will receive the highest payout of Rs 370 crore from the ministry of heavy industries. This will be followed by around Rs 275 crore for Ather, and TVS around Rs 150 crore, while Rs 28-30 crore will go to Hero Motocorp.
The remaining amount, which adds up to Rs 288 crore, will be released once the companies submit details of the reimbursements made by them, the sources said. Ather has the highest amount of reimbursements to make, around Rs 140 crore to 95,000 buyers of Ather 450X model of electric two wheeler.
Similarly, Ola has to clear a bill of around 130 crore to almost 1 lakh buyers of Ola S1Pro before the government releases the funds.
The government had announced the Rs 10,000-crore FAME II scheme a few years ago to promote electric vehicles, especially those used for public transport. The scheme, however, ran into trouble with the payment to the companies delayed in the wake of complaints. In this fiscal, the ministry is looking to settle bills of Rs 5,000 crore.