Govt. to digitally monitor EV parts localization as part of FAME-II policy

The government is in the process of making an automated data transfer system to monitor the localisation content of EVs availing of subsidies under the ₹10,000 crore FAME-II policy. This move is to promote indigenous manufacturing and ensure imported vehicles do not get incentivised at the expense of Indian taxpayers.

The IT-enabled system based on Application Programming Interface (API) would enable the smooth transfer of a set of critical data related to domestic value addition (DVA) from the beneficiaries’ existing enterprise resource planning (ERP) systems to the nodal ministry’s portal along with traceability of products based on digital footprints from October 1.

Ministry of heavy industries secretary Arun Goel remarked that the move would not only help establish an ecosystem for EV manufacturing in India but also further ease of doing business.

“If similar systems are replicated for schemes requiring substantial value-addition across ministries, it will ensure transparency. This will further attract investments in India and promote indigenous manufacturing,” he said.

Without encroaching on non-disclosure agreements (NDAs), the system will enable monitoring and verification of domestic value addition being done by companies, said top sources. The digital records of domestic value addition being maintained by original equipment makers (OEMs) are at a higher level of granularity. But at the ministry’s level, pre-defined information is received for monitoring and verification. Thus, no diversion is possible.