Currently, the manual filing process leads to discrepancies, such as mismatched name on Aadhaar card and the vehicle owner's actual name.
11 Sep 2024 | 5347 Views | By Amit Vijay M
The Ministry of Heavy Industries (MHI) in India plans to simplify the process for filing subsidies for electric vehicles (EVs) by making it paperless and streamlined for dealers.
Currently, the manual filing process leads to discrepancies, such as mismatched names between the name on the Aadhaar card and the ...
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The Ministry of Heavy Industries (MHI) in India plans to simplify the process for filing subsidies for electric vehicles (EVs) by making it paperless and streamlined for dealers.
Currently, the manual filing process leads to discrepancies, such as mismatched names between the name on the Aadhaar card and the vehicle owner's name which complicates the process for OEMs to claim subsidies and for customers to receive them.
Issues with the current subsidy filing process arise when there is a mismatch between the name of the vehicle buyer on the Aadhaar card and the registration certificate (RC). Currently, to claim EV Subsidies, the manufacturer must submit the invoice along with the buyer's name on the Aadhaar card and the RC to the government and the Industrial Finance Corporation of India (IFCI).
More than Rs 300 crore of FAME 2 subsidy, which has to be disbursed to auto companies had got held up last year especially those manufacturing electric two-wheelers, due to a mismatch between the vehicle buyers’ name as per their Aadhaar card and that in the registration certificate (RC), according to auto players.
To address these challenges, MHI plans to implement a new paperless mechanism by the end of the year, which will be linked through an app and utilize facial recognition technology. Dr. Hanif Qureshi, Additional Secretary of the Ministry of Heavy Industries, emphasized that this approach would eliminate the current requirement for the Aadhaar card, which involves a substantial amount of paperwork. He highlighted the difficulties faced by customers who must visit dealers and complete multiple forms. The new system aims to simplify the subsidy filing process, making it more efficient and user-friendly.
At the FADA summit, Dr. Qureshi also provided insights into the Indian automobile industry, noting that it has recently surpassed 20 lakh crore (approximately 40 billion USD) in value. India leads globally in the manufacturing of three-wheelers and is the second-largest manufacturer of two-wheelers. In the passenger car segment, India is ranked third globally, reflecting its significant market presence.
Dr. Qureshi further stated that India's automobile industry contributes over 7% to the nation's GDP and involves around eight to nine ministries in its operations. MHI is focused on improving the ease of doing business for the sector with a strong emphasis on customer satisfaction, and plans to make the filing of EV subsidies even more transparent in the future, he stated.