Why just electric and not auto LPG? IAC questions government's policy

  • Auto LPG is considered as one of the greener fuel solutions for vehicles compared to petrol and diesel.
While using CNG in vehicles has seen growth across India, auto LPG is yet to grab a strong footprint. (HT PHOTO)
While using CNG in vehicles has seen growth across India, auto LPG is yet to grab a strong footprint.

Indian Auto LPG Coalition (IAC), the nodal body for the promotion of auto LPG in India, has questioned the government's policy to promote green mobility through electric vehicles only. IAC claims that running vehicles on auto LPG is an equally worthy solution in the war against vehicular carbon emissions. The organisation has dubbed the strategy to promote only electric vehicles to reduce vehicular emissions as disproportionate.

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According to the organisation, almost 30 crore vehicles on Indian roads, the electric powertrain is not just a simple option but with lower entry barriers, auto LPG outshines EVs in terms of infrastructure investment in the short term.

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Running electric vehicles is not a carbon-neutral strategy, as 60 per cent of the electricity is generated by burning fossil fuels. This results in carbon emissions through the electric generation process, even if not through vehicle tailpipes. In such a situation, the government should consider well-to-wheel emissions by using auto LPG, says IAC.

The organisation has demanded GST reduction of auto LPG conversion kits from 28 per cent to 18 per cent. It has also demanded GST on auto LPG be reduced from 18 per cent to five per cent in order to stimulate demand in the sector.

Currently, the Indian rule requires type approvals for the auto LPG conversion kits to be renewed every three years, which is a costly affair. This is another reason why auto LPG conversion is not popular in India while retrofitting vehicles with CNG kits has witnessed popularity.

Speaking on the issue, Suyash Gupta, Director general of IAC has said that currently, around 2.5 million vehicles in India run on auto LPG. "It makes almost perfect sense to give an instant policy boost to this fuel," Gupta added.

First Published Date: 20 Jan 2022, 09:24 AM IST

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