SMEV Seek Support from Commerce Minister to Overcome Subsidy Crisis

In a recent development, the Society of Manufacturers of Electric Vehicles (SMEV), the registered association representing Indian electric vehicle (EV) manufacturers, has reached out to Shri Piyush Goyal, the Honourable Minister of Commerce and Industry.

The Ministry of Heavy Industries (MHI) owes the association about Rs 1200 crores in unpaid subsidies, and the organisation has asked the Minister for assistance with the ongoing ban on using the FAME subsidy through the official NAB portal. SMEV has also highlighted the various restrictions imposed on the EV industry.

The letter addressed to the Minister emphasizes the critical situation faced by the EV industry, including unpaid dues of Rs. 1200 crores from the previous fiscal year to affected original equipment manufacturers (OEMs). Additionally, these companies are facing an embargo on listing sales on the official NAB portal, along with notices to recover previously paid subsidies.

According to SMEV, this situation is a “triple whammy,” unusual both in the Indian business environment and globally. It further affects all the companies that were at the forefront of the EV revolution in the country when there was minimal government support for the industry.

Mr. Sohinder Gill, the Director General of SMEV, expressed his concerns about the issue, stating, “These are home-grown companies, fueled by the zeal of ‘Make in India’ and ‘Start-Up India,’ and financed by Indian money and enterprises. It will be a discredit to all if these EV companies fail or are sold at undervalued prices. Such an outcome will tarnish the reputation of Indian enterprise and undermine the government’s burgeoning e-mobility plans. It is crucial to note that international investors closely monitor this space, and banks and financiers are hesitant to provide credit.”

Also Read: SMEV Urges Niti Aayog to Address Concerns Related to FAME 2 Policy, Details Inside

Furthermore, SMEV has highlighted the unreasonable situation where vendor payments across the entire EV ecosystem have been significantly delayed. Employees in these companies are feeling insecure as salaries are being deferred or delayed, while dealerships are on the verge of collapsing.

In order to discuss alternative ideas for resolving this problem, the association has asked the Minister to intervene and requested a meeting. SMEV believes that the Minister’s understanding of the business cycle, industrial production processes, and the financial impact of halted cycles on businesses makes him an ideal ally in addressing these pressing issues.

The EV industry’s plea for support highlights the urgent need for action to resolve the subsidy embargo and financial crisis. It remains to be seen how the Ministry of Commerce and Industry will respond to SMEV’s appeal and what measures will be taken to safeguard the interests of Indian EV manufacturers during these challenging times.

In a recent development, the Society of Manufacturers of Electric Vehicles (SMEV), the registered association representing Indian electric vehicle (EV) manufacturers, has reached out to Shri Piyush Goyal, the Honourable Minister of Commerce and Industry.

The Ministry of Heavy Industries (MHI) owes the association about Rs 1200 crores in unpaid subsidies, and the organisation has asked the Minister for assistance with the ongoing ban on using the FAME subsidy through the official NAB portal. SMEV has also highlighted the various restrictions imposed on the EV industry.

The letter addressed to the Minister emphasizes the critical situation faced by the EV industry, including unpaid dues of Rs. 1200 crores from the previous fiscal year to affected original equipment manufacturers (OEMs). Additionally, these companies are facing an embargo on listing sales on the official NAB portal, along with notices to recover previously paid subsidies.

According to SMEV, this situation is a “triple whammy,” unusual both in the Indian business environment and globally. It further affects all the companies that were at the forefront of the EV revolution in the country when there was minimal government support for the industry.

Mr. Sohinder Gill, the Director General of SMEV, expressed his concerns about the issue, stating, “These are home-grown companies, fueled by the zeal of ‘Make in India’ and ‘Start-Up India,’ and financed by Indian money and enterprises. It will be a discredit to all if these EV companies fail or are sold at undervalued prices. Such an outcome will tarnish the reputation of Indian enterprise and undermine the government’s burgeoning e-mobility plans. It is crucial to note that international investors closely monitor this space, and banks and financiers are hesitant to provide credit.”

Also Read: SMEV Urges Niti Aayog to Address Concerns Related to FAME 2 Policy, Details Inside

Furthermore, SMEV has highlighted the unreasonable situation where vendor payments across the entire EV ecosystem have been significantly delayed. Employees in these companies are feeling insecure as salaries are being deferred or delayed, while dealerships are on the verge of collapsing.

In order to discuss alternative ideas for resolving this problem, the association has asked the Minister to intervene and requested a meeting. SMEV believes that the Minister’s understanding of the business cycle, industrial production processes, and the financial impact of halted cycles on businesses makes him an ideal ally in addressing these pressing issues.

The EV industry’s plea for support highlights the urgent need for action to resolve the subsidy embargo and financial crisis. It remains to be seen how the Ministry of Commerce and Industry will respond to SMEV’s appeal and what measures will be taken to safeguard the interests of Indian EV manufacturers during these challenging times.