Gadkari Urges States to Slash GST on Flex-Engine Vehicles to Boost Adoption

Union Minister Nitin Gadkari called on states to support a reduction in GST on flex-engine vehicles. He emphasized the economic and environmental benefits of flex engines and urged finance ministers to advocate for a 12% GST rate during meetings. Leading auto manufacturers already have models ready.

Nitin Gadkari, Union Minister of Road Transport and Highways, urged states to advocate for cutting GST on flex-engine vehicles. Gadkari emphasized that state support is crucial for promoting flex engines by reducing GST to 12% on these vehicles.

Speaking at the IFGE's India Bio-Energy and Tech Expo in New Delhi, Gadkari revealed that he had already discussed the proposal with the Maharashtra finance minister. Gadkari said factors like economic viability, proven technology, raw material availability, and marketability favor the growth of flex engines. He noted that carmakers like Tata, Suzuki, and Toyota are set to launch flex-engine cars in India.

The minister highlighted that the market potential for flex engines is significant, especially given the lower cost and reduced pollution compared to fossil fuels. Bajaj, TVS, and Hero are among the companies ready to offer models with flex engines capable of running on 100% ethanol. Gadkari also mentioned efforts to convert diesel generators and telecom towers to ethanol.

In summary, Gadkari called for creating confidence among stakeholders, citing a clear policy and support from other ministers like Hardeep Puri. He stressed the need to boost biomass production to support the biofuel industry.

(With inputs from agencies.)