IFCI & EY brought in to streamline the Rs10,000 crore FAME scheme

28 Feb 2023 , 08:27 AM

To streamline its 10,000-crore program to encourage electric vehicles, the government has partnered with consultancy firm EY and public sector non-banking finance business IFCI Ltd.

The action was taken in response to claims that some manufacturers of electric two-wheelers had broken the law in order to receive subsidies under the Faster Adoption and Manufacture of Hybrid and Electric Vehicles – Phase II (FAME-II) plan.

According to those in the know, the Ministry of Heavy Industries (MHI), which is in charge of the initiative, has appointed IFCI as the project manager. Ten of the government’s fourteen production-linked incentives (PLI) programs are already managed by the NBFC, including the two that the MHI is in charge of. The MHI previously handled internal management of the FAME-II initiative.

In addition to managing tasks like data administration and computing the amount of subsidies owed, IFCI will serve as a liaison between the government and the applicant enterprises. It has already developed a framework comparable to this for advanced chemical cells and the automotive and auto component industries.

EY has been hired to audit the financial records of numerous businesses that are allegedly fraudulently claiming scheme benefits.

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