Cost of FAME 3: Meet local sourcing norms or face penalty

In the event of irregularities, manufacturers would have to return claimed subsidies with interest at a rate 3% higher than MCLR (marginal cost of funds-based lending rate) in penalties, the official said. This will be the first time EV makers are penalised for not meeting declared localisation criteria under the scheme since the government launched FAME in 2015.