Gadkari urges states to reduce GST on flex engine vehicles

Union Road Transport and Highways Minister Nitin Gadkari urged states to reduce GST on flex engine cars.

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/she said, “We will try to convince all the finance ministers. Yesterday I had the opportunity to discuss with the finance minister of Maharashtra and I told him/her 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 and 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 it is the government’s aim 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 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 is also not polluting. So this is the important reason why it is going to be beneficial for the common man as well,” the minister said.

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

he/she 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 also converting it to ethanol.”

he/she further said that the raw material is already available in India, there is a need to consider 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 grateful to Hardeep Puri ji for the availability of ethanol, our group of ministers is there. We already have a clear policy.”