In what seems a U-turn in the context of what he said last year about bulldozing petrol/diesel vehicles from the roads, the Transport and Highways Minister Nitin Gadkari on Wednesday said the government is making favourable policies for all.
He said the government wants to reduce imports, increase exports and promote use of biofuels such as bioethanol, bio-CNG, biodiesel and second generation biofuels, for which the automotive industry has come together to reduce carbon footprint.
Addressing the inaugural session of the 58th AGM of Automotive Component Manufacturers Association of India (ACMA) here, Gadkari said, “Innovation, entrepreneurship, technology and research are important for us for transforming waste to wealth and reduce pollution.”
Last year, at the Society of Indian Automobile Manufacturers (SIAM) convention, Gadkari had said that he would ‘bulldoze’ polluting vehicles and wanted electric vehicles (EVs) to replace internal combustion engines , to cut down pollution.
His statement was criticised by the industry and stakeholders saying that the government does not have clear policies, and when the sector was already investing for the shift to BS-VI emission norms, it was talking about another big investment for electric vehicles.
Meanwhile, Anant Geete Minister for Heavy Industries and Public Sector Enterprises, said, “It is the duty of the government to make policy which can be executed by the industry. So, we should not make a policy that cannot be executed by the industry.”
The Heavy Industry Ministry is framing a comprehensive auto policy after consultation with all the stakeholders, he said. “The Department of Heavy Industries has always supported the automotive industry. We will definitely look into suggestions for having a clear, well defined short-, mid- and long-term policy,” Geete said.
‘Embrace new tech’
He also said the government will address the auto industry’s concerns regarding fuels and biofuel. However, he added that with changing times, the industry must adapt and embrace new technologies.
Geete said the Prime Minister will announce the Faster Adoption and Manufacturing of Hybrid and Electric (FAME 2) Vehicles scheme at MOVE summit on Friday.
Suresh Prabhu, Minister for Commerce & Industry and Civil Aviation, said, “The Government has set a vision of realising a national GDP of $5 trillion in next seven years with manufacturing sector accounting for $1 trillion with the auto and auto component industry contributing significantly.”