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Electric vehicles subsidy PLI scheme: Why was the center strict regarding subsidy and PLI scheme on e-vehicles, know why

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Electric vehicles subsidy PLI scheme: Why was the center strict regarding subsidy and PLI scheme on e-vehicles, know why

The Center was apprehensive that companies take certificates by putting good quality parts in the vehicles sent for testing. At the same time, low-quality parts are being used in the e-vehicles given to the customers. In view of all these things, the government has tightened the rules of subsidy and PLI scheme.


New Delhi. The central government has made some rules more stringent than before in the matter of electric vehicle subsidy and PLI scheme. Actually, till now companies have been getting e-vehicles tested in ARI or ITR. Companies have been taking subsidies on e-vehicles by stating the source of the parts and getting them tested. There have been many incidents of fire in electric vehicles recently. In view of this, the government paid attention to the safety of customers and the shortcomings of e-vehicles.

The government was apprehensive that companies were preparing vehicles by installing normal quality parts. For this reason, incidents of fire in electric vehicles are happening again and again. At the same time, it was also believed that companies take certificates by putting good quality parts in the vehicles sent for testing. At the same time, low-quality parts are being used in the e-vehicles given to the customers. In view of all these things, the government has tightened the rules of subsidy and PLI scheme.

What will be the benefit of the new rules

According to the new rules of the government, companies will have to give complete information about the source of the parts used in every e-vehicle. According to the report of CNBC TV18, now enterprise resource planning will have to be linked with FAME-2. This will not only make e-vehicles more secure, but will also help in promoting local parts manufacturers. The government believes that with this, better quality parts will be used in the vehicles and the incidents of arson will be reduced.

Information to be certified by CA

Electric vehicle manufacturers will have to get all the information related to the source company of the parts used in the e-vehicles certified by a chartered accountant. This will discourage companies from using low quality parts and use good parts in e-vehicles. According to the report of CNBC TV18, the stringent new rules regarding e-vehicles will be implemented from 1 September 2022.

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