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Transport and Highways Minister Nitin Gadkari on Thursday said no permits would be required for alternative fuel vehicles, including CNG, ethanol and electric vehicles.
“We have decided to exempt vehicles run on alternative fuels from permit requirements. I have spoken to all the State Transport Ministers and they have unanimously agreed to do away with the permits for methanol, CNG/ bio CNG... all alternative fuel vehicles,” Gadkari said at the 58th annual convention of Society of Indian Automobile Manufacturers (SIAM) here.
However, Gadkari said there won’t be anything like that for mild hybrids or hybrid vehicles. “There will be 100 per cent exemption for alternative fuel vehicles but not for mild hybrids,” Gadkari told BusinessLine .
Companies such as Maruti Suzuki India (Ciaz) and Mahindra & Mahindra (like Scorpio) offer mild / micro hybrid vehicles, which do not get any subsidies right now.
Stating that his Ministry has decided on a pilot project to run methanol-powered buses on the Mumbai-Pune route and in Guwahati (Assam), Gadkari asked the private sector to participate in the adoption of alternative fuels.
He said recently an aircraft was flown on biofuel, which is a welcome step and we can save a lot of money (around ₹30,000 crore every year on jet fuel). He said India is facing two major issues — pollution and rising imports of fuels —and import bill is increasing due to the growth in automobile sector. He said this was the time for the country to think about cleaner fuel and the government was working on industry-friendly policies. He urged the industry leaders to ask their European counterparts if they can still drive Euro-II or III vehicles on their roads. “They are not allowed, so why do we here?,” he asked.
“The logistics cost are also high and somewhere it varies 15-18 per cent. I hope that with GST improved loads and higher axle loads, logistics sector will benefit in the short run by 20-25 per cent. It’s a very good thing for the economy.”
‘Use waterways’
He also asked the auto industry to use waterways for logistics to trim costs and lower pollution.
Gadkari also said the government would do away with speed governors with better infrastructure and roads, such mechanisms should not hamper the speed of vehicles.
He said the government is developing expressways so we don’t require such governors. “We are making six/ eight lanes highways and if we put maximum speed of 80kmpl… it doesn’t mean that only high-speeds lead to accidents. There are various reasons,” he added.
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