IFCI & EY to help streamline ₹10,000-crore FAME scheme, Energy News, ET EnergyWorld

IFCI & EY to help streamline ₹10,000-crore FAME scheme

The government has enlisted public sector non-banking finance company IFCI Ltd and consultancy firm EY to help streamline its ₹10,000 crore programme to promote electric vehicles.

The move comes amid allegations that some electric two-wheeler makers had flouted rules while availing of subsidy benefits under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles – Phase II (FAME-II) scheme.

The Ministry of Heavy Industries (MHI), which is overseeing the scheme, has hired IFCI as the project manager for the programme, people in the know said. The NBFC already manages 10 of the government’s 14 production-linked incentives (PLI) schemes, including two overseen by the MHI. The FAME-II scheme was earlier being managed internally by the MHI.

IFCI will act as an interface between the applicant companies and the government and handle aspects like data management and calculating subsidies due. It has already created a similar framework for the PLI schemes for the automobile and auto component industry and advanced chemistry cells.

EY has been brought in to audit the books of multiple companies alleged to be wrongfully claiming scheme benefits.

Queries sent to the MHI, IFCI and EY India remained unanswered as of press time Monday.