New Delhi, 20th June 2023: The registered association representing Indian manufacturers of electric vehicles SMEV (Society of Manufacturers of Electric Vehicles) has in its latest communication reached out to the Honourable Minister of Commerce and Industry, Shri Piyush Goyal. In the letter to the Minister, SMEV has sought support for the EV industry facing embargo on utilization of FAME subsidy through official NAB portal pending resolution of Rs. 1200 cores worth of outstanding subsidy owed by Ministry of Heavy Industries (MHI) and other impediments imposed on the industry.
In its letter, SMEV said that unpaid dues of Rs. 1200 crores since the last fiscal to affected OEMs, and a further embargo on these companies to list sales on the official NAB portal, and further notices to recover past paid subsidies has created a crisis for the industry.
SMEV has deemed it a triple whammy, unprecedented in the annals of business in the country and anywhere else across the globe against the very companies that pioneered the EV revolution in the country especially from the time when there was no government support to the sector at all.
Mr Sohinder Gill, Director General – SMEV, commenting on SMEV’s latest action sad, “These are home-grown companies, fuelled by the zeal of ‘Make in India’, ‘Start-Up India’ and financed by Indian money and enterprises. It will be to nobody’s credit if these EV companies fail or are sold for a song to the highest bidder. It will be a black mark against Indian enterprise and the burgeoning E-Mobility plans of the Government. It is important to note that investors across the world are watching this space closely, and banks and financiers are refusing to extend credit.”
The industry body in its communication has said that the unreasonable situation, coupled with a cavalier attitude towards the financial condition of OEMs has prompted it to seek the Hon’ble Minister of Commerce and Industry’s support as he might understand the business cycle, the production and process of industrial units, the financial cycle and what impact it has on business when the cycle stops.
SMEV highlights that across vendor payments across the EV ecosystem have been inordinately delayed. Employees across all these companies are insecure and salaries are being deferred or delayed. Dealerships are collapsing. The situation is near breaking point, said the Association seeking his intervention and a meeting to discuss how these companies could tide over this crisis.
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