Gadkari urges states to reduce GST on flex engine vehicles

Gadkari said the government needs the support of states to promote flex engine vehicles by reducing GST on flex engines, cars and scooters to 12 per cent.

He said, “We will try to convince all the finance ministers. Yesterday I got a chance to discuss with the finance minister of Maharashtra and I told him please go to the meeting and propose to reduce GST on flex engines, cars and scooters to 12 per cent.”

Addressing IFGE's India Bio-Energy & Technology Expo in New Delhi, the Union Minister said that factors such as economic viability, proven technology, availability of raw materials and marketability of the finished product favour the development of these engines.

Gadkari said the government aims to develop flex-fuel engines and we have “proven technology” to make it possible.

The Union Minister said, “I think flex fuel has become very, very important now. The managing directors of Tata, Suzuki and Toyota have already decided to introduce flex engine cars in the country.”

Gadkari said, “So the flex engine is the ultimate goal. It has immense potential as far as the market is concerned. Everywhere, as far as comparison is made between fossil fuel and biofuel, in the Indian scenario, biofuel costs less and it does not cause pollution also. So this is the important reason why it is going to be beneficial for the common man as well,” the minister said.

Gadkari further said that automobile companies like Bajaj, TVS and Hero, along with two or three others, have already developed their models with flex engines that run on 100 per cent ethanol.

He said, “Many generator manufacturers are working to convert diesel generators to ethanol. One of these companies is also interested in converting 5 lakh telecom towers and 250 crore liters of diesel consumption to ethanol. Now they are converting this also to ethanol.”

He further said that while the raw material is already available in India, there is a need to look at ways to increase the production of biomass, which can be useful for making biofuel. (ANI)

Gadkari said, “I think this is such a time for the country when we have very good prospects. We need to create positivity and confidence in the minds of stakeholders. Now things have opened up. The market is going to grow. I am again very thankful to Hardeep Puri ji for the availability of ethanol, our group of ministers is there. We already have a clear policy.”