Indian Govt asks subsidiary amount of Rs 124 crore from Greaves Cotton Ltd
Greaves Cotton Ltd (GCL), a diversified engineering firm, announced on Friday (May 26) that the Indian government has requested a subsidiary sum of about Rs 124 crore plus interest from Greaves Electric Mobility Private Ltd (GEMPL) for violations of Phased Manufacturing Programme (PMP) norms.
In a letter sent to Greaves Cotton on May 25, the Ministry of Heavy Industries advised deregistering the company from the FAME India Scheme Phase II since it did not follow PMP standards.
Furthermore, the Ministry of Heavy Industries (MHI) has asked GEMPL to deposit to the MHI all incentives claimed (about Rs 124 crore plus interest) under the abovementioned plan, subject to the submission of requisite paperwork.
Greaves Cotton Ltd’s subsidiary is Greaves Electric Mobility. Under the Ampere brand, it has electric two-wheeler models Primus, Magnus EX, and Reo Plus.
The Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) India initiative began on April 1, 2019, for three years and was extended for another two years through March 31, 2024.
The initiative aims to accelerate the adoption of electric and hybrid vehicles by delivering upfront incentives for purchasing e-vehicles and installing necessary charging infrastructure for EVs.
Furthermore, GEMPL’s board of directors will review and analyse the facts surrounding the purported notice and the alleged violations to determine the best course of action, including engaging with the government to better understand the alleged violations and reach a resolution, the company said.
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