India must reduce its dependence on imported fuels: Nitin Gadkari

Union Minister for Road Transport and Highways, Nitin Gadkari on Wednesday emphasized that India needs to reduce its dependence on imported fuels by adopting alternative fuels, including bio fuels, hydrogen and electric mobility.

“We have an import of Rs 22 lakh crore. There should be no import. We can stand on our own strength. So we are working on it. We want to concentrate on alternative fuel, biofuel, hydrogen, electric, whatever the choice may be. Now we are planning to use methanol,” the union minister said at the 7th Auto Retail Conclave of FADA in the national capital.

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Gadkari also informed that trials were underway to blend isobutanol with diesel and that the government was engaging with agriculture equipment companies to promote the use of alternative fuels in tractors and farm machinery.

“Now I’ve got a tractor on electric. So my cost for the tractor is very less. And it is very important for India that we need to reduce our expenditure cost in agriculture, which is going to be helpful for our economy, and at the same time, we are going to reduce our imports. That is not only going to stop our air pollution, but that is going to strengthen the Indian economy,” the minister added.

Urging the country’s auto industry to think about scrapping vehicles, he said, “You start your own units, it can also be an advantage for all of you.”

Speaking on the occasion, Shailesh Chandra, President of SIAM and Managing Director of Tata Motors, highlighted the strong economic contribution of the automobile sector.

“The sector’s overall contribution to the Indian economy exceeded rupees 20 lakh crore and has contributed to about 15 percent of the country’s GST collections amounting to more than rupees 3.37 lakh crores in addition to 88,000 crore from motor vehicle tax,” he said.

Meanwhile, the new GST rates and slabs are expected to have a wide-scale impact in the automobile sector, as the rate cut, which extends across the entire range of vehicles from two-wheelers to cars, as well as buses and trucks, will spur growth and create more jobs.

The lower GST will push demand, helping automobile manufacturers and the large ancillary industry as the rate cut extends to the auto parts segment as well.

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