Localisation Report Submission Deadline Under FAME-II Extended Till September 30

The Ministry of Heavy Industries has announced an extension of the deadline of recording the domestic value addition by the automakers for availing subsidies on EVs and hybrid vehicles to September 30. The change is implemented regarding the government’s Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) – II scheme, according to a report.

For automakers to avail of the benefits under the FAME-II scheme, they are required to make their product using at least 50 percent of components that are locally sourced. The percentage of localisation – the usage of home-grown components – is submitted and audited by the Automotive Research Association of India (ARAI).

Multiple allegations surfaced that claimed that many EV manufacturers were importing all the components and making minimal value addition to the country’s economy. In addition, the allegations alleged that numbers projected by some manufacturers were faulty, which allowed the FAME-II subsidy without fulfilling the criterion.

To bring some clarity to the matter, and leave little to no space for such allegations to breathe, the government decided to make the process digital. After the amendment, companies have to update the government’s FAME portal about the value addition after every stage of manufacturing using a digital mechanism.

This value addition will be added and that will be required to match the localisation percentage submitted by the ARAI. Value addition is basically the contribution by the company to the country’s economic structure before it sells a product or a service to the customers.

The deadline for adhering to the digital system has been extended after considering the request of the manufacturers who needed some extra time to adapt to the new software system. Earlier the deadline was set at September 1, which is now postponed till September 30.

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FAME-II is a three-year subsidy program that aims at assisting the electrification of public and shared transportation, including buses and three-wheelers. The scheme has an outlay of Rs 10,000 crores for subsidies and fuelling infrastructure.

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