Our government has been actively promoting electric vehicles, and from 1 April 2019 to 1 April 2022, it approved an expenditure of Rs 10,000 crore under Phase II of its Faster Adoption and Manufacturing of Electric Vehicles Scheme.
Electric Vehicle Government plan
This plan aims to stimulate demand for EVs in our nation by offering incentives and subsidies. Creating demand for around 5 lakh e-3 Wheelers and 10 lakh e-2 Wheelers was one of the objectives of this second phase of FAME. The Modi Sarkar is really serious about the switch to electric mobility, as evidenced by these enormous and ambitious numbers.
The government had to issue warnings and temporarily halt some of the subsidies, though, as is so common in India.
Electric Vehicle Manufacturer’s Issues
Several electric vehicle manufacturers were passing off cheap Chinese imports that were fully constructed as Indian-made or -assembled electric two-wheelers because they were not adhering to the localization requirements! There have apparently been attempts to label foreign parts as “Made in India” as well.
In fact, this alleged “electric vehicle subsidy scam” is so colossal that the government has even bought a number of electric two-wheelers from actual owners for inspection.
Yes, the authorities are purchasing EVs and, after disassembling them, scrutinising each component to determine whether the parts used in a vehicle sold with the benefit of subsidies are locally sourced in accordance with the established standards.
The Society of Manufacturers of Electric Vehicles (SMEV) has alleged that “vested interest groups were seeking to undermine the government’s e-mobility programme through an anonymous campaign.”
This programme was put in place to lower imports, promote homegrown manufacturing, and eventually position our nation as a global leader in the production of electric vehicles and their parts. However, it seems that not many manufacturers have been taking advantage of the subsidies and benefits while offering fully imported EVs or EVs with foreign-sourced parts!
It doesn’t end there. Electric vehicles with a top speed of less than 25 kph, powered by motors with a 30-minute charge time and output of less than 0.25 kW, are not considered motor vehicles under the motor vehicle act and are therefore exempt from requirements such as having a registration number, insurance, type approval, and so forth.
This makes it incredibly simple for anyone to find and sell such EVs, and reports indicate that some manufacturers are also abusing this rule to boost their earnings and sales.
They ostensibly state that the car satisfies the exemption requirements, but in reality, they have fitted larger batteries that give their EVs a greater range and faster acceleration! This is not only against the law but also a serious threat to road safety since if unregistered cars are driving about at high speeds and get into accidents, there is no way to punish them because they are not even considered “motor vehicles”!
All of this has me wondering why these types of deception or fraud occur. Are our businesspeople and entrepreneurs overly ambitious and conditioned to find ways to skirt the law and take advantage of legal loopholes in order to make a little extra money? Are we all accustomed to being dishonest and deceitful?
Or are our laws written in such a way that they can be purposefully construed incorrectly, allowing a select group of well-connected and favoured individuals to profit from the ambiguities and lack of clarity? Whatever the case, I believe we should be much more sincere in all of our interactions, as well as in how we conduct ourselves professionally.
