Centre Proposes Stricter Fuel Efficiency Norms For Passenger Vehicles

New Delhi, Jul 18 (KNN) The Centre has proposed new fuel efficiency standards for passenger vehicles to reduce crude oil imports, enhance energy security and curb emissions, according to a draft notification issued by the Ministry of Power.

The proposed norms will apply to vehicles manufactured over a five-year period ending March 2032, with fuel efficiency requirements becoming progressively stricter each year. The rules will be finalised after public consultation.

Aim To Cut Oil Imports And Emissions
The ministry said the revised standards are expected to improve the average fuel efficiency of passenger vehicles, leading to lower fuel consumption, reduced dependence on imported crude oil and a lower oil import bill.

India currently meets about 90 percent of its crude oil requirement through imports. Recent supply disruptions linked to the conflict in West Asia have renewed focus on reducing the country's reliance on imported oil and strengthening energy security.

Automakers To Meet Fleet-Wide Emission Targets
The proposed framework builds on fuel efficiency norms introduced in 2017 and requires automobile manufacturers to progressively reduce the average carbon dioxide emissions of their vehicle fleets, which serve as the benchmark for fuel consumption.

Manufacturers will be eligible to earn credits for sales of cleaner vehicles, including electric, ethanol, compressed natural gas (CNG) and flex-fuel models, as well as for adopting technologies that improve fuel efficiency.

Tradable Credit Mechanism Proposed
The draft also proposes a tradable credit mechanism under which manufacturers exceeding their fuel efficiency targets can sell credits to companies that fall short of the prescribed standards.

The government said the proposed framework will support India's climate goals while promoting cleaner mobility. 

The transport sector accounts for nearly 14 percent of the country's greenhouse gas emissions, while vehicle emissions remain a major contributor to urban air pollution, particularly in cities such as Delhi.

(KNN Bureau)