IFGE India Bio-Energy & Tech Expo: Nitin Gadkari asks states to pitch for lowering GST on flex engine vehicles

Road Transport and Highways Minister Nitin Gadkari said on Monday that the central government needs the support of the states to promote flex engine vehicles by reducing the applicable Goods and Services Tax (GST) by up to 12 per cent. Speaking at the India Bio-Energy & Tech Expo organised by the Indian Federation of Green Energy (IFGE) at the Yashobhoomi Dwarka convention center in the national capital, the minister asked the state finance ministers to pitch for reducing GST on flex engine vehicles.

"We will try to convince all the finance ministers. Yesterday, I had the opportunity to discuss (the matter) with the finance minister of Maharashtra. I told him 'please go to the meeting and put up this proposal for reducing GST up to 12 per cent on flex engines, cars, and scooters'," he said.

Currently, such vehicles fall under the umbrella of the 'other vehicle' category, which attracts a GST of 28 per cent plus a cess of 15 per cent. 

Touching upon a range of topics related to renewable energy, he said that bioenergy or biofuel is set to reach 50 per cent of fossil fuel in the country over the next five years.sa

Factors such as economic viability, proven technology, the availability of raw materials, and marketability of the finished product are in favour of the development of these engines, the Union Minister said.

He also said that the government remains committed to developing flex-fuel engines. "We have the proven technology to make it possible... Flex fuel is very, very important," said Gadkari.

He also mentioned that the MDs of Tata Motors, Suzuki and Toyota have already decided to start flex engine cars in the country. 

"So the flex engine is the ultimate target. As far as the market is concerned, there is huge potential. Everywhere, as far as a comparison between fossil fuel and biofuel, in the Indian scenario, the cost of biofuel is less and there is no pollution. So that is the important reason that it is going to be advantageous to the common man also," Gadkari said.

"Many generator manufacturers are working to change the diesel generators into ethanol. One of the companies is also they are taking an interest in converting 5 lakhs of telecommunication towers there and 250 crore litre consumption of diesel. Now they are also changing into ethanol," he said. 

"I feel that this is the time for the country that we have got very good potential. We need to create positivity and confidence in the minds of the stakeholders," he added. 

With inputs from agencies