Union Transport Minister Nitin Gadkari pitches for priority sector lending for companies engaged in alternative fuels

Union Transport Minister Nitin Gadkari on Monday argued for extending priority sector lending facilities for entities engaged in the production and business of alternative fuels. The business includes bioethanol, compressed natural gas, and LNG. He believes that this move will reduce the import of fossil fuels, as per PTI reported.

The Road Transport and Highways Minister further stated that the Indian Oil Corporation's (IOC) trial of bringing ethanol's calorific value to that of petrol was successful.

According to PTI, "Those involved in production or business of alternative fuels should be included in priority sector lending. I shall speak about the issue with the finance minister and RBI Governor," he said.

The priority sector lending facility will make it easier for companies who produce or sell alternative fuels to secure loans from banks on more favorable terms.

He claimed that by taking this step, India will be able to reduce its reliance on fossil fuel imports, said PTI.

Gadkari stated on Wednesday that he will meet with the Information Technology Minister and advise that telecom companies use ethanol-based generators instead of diesel-based generators to power IT towers.

The minister stated that there appears to be a power shortage in the country since demand has increased as a result of the country's economic growth.

Last week, peak power shortages jumped from 5.24 GW on April 25 to 10.77 GW on April 28, indicating the impact of several causes such as low coal stocks at power plants, heatwaves, and other issues on the increasing electrical crisis, PTI said.

In April 2020, the implementation of a lockdown to stop the spread of the deadly coronavirus had an impact on electricity usage and demand. In April of this year (before the pandemic), 110.11 billion units of electricity were consumed, PTI reported.

Also, speaking at the event, Union Heavy Industries Minister Mahendra Nath Pandey said:" Under the government's FAME-II scheme, tendering of 5,400 electric buses has been completed and we will get them on road in the next six months."