As a part of the government’s mission to transit into a green economy, Union Minister Nitin Gadkari has announced a reduction in the Goods and Services Tax (GST) rates for hybrid vehicles.
Gadkari, the Minister of Road Transport and Highways, believes it is possible to get rid of internal combustion engine (ICE) vehicles entirely, although he did not provide a timeline for this ambitious goal.
To accelerate the adoption of hybrid vehicles, Gadkari has proposed reducing the Goods and Services Tax (GST) on hybrid cars to 5 per cent and on flex-fuel engines to 12 per cent . This proposal has been sent to the Finance Ministry for consideration.
Gadkari highlighted that India spends Rs 16 lakh crore annually on fuel imports, money that could be better utilised for improving the lives of farmers and creating employment opportunities in rural areas.
While environmental activists welcome Gadkari’s vision for green mobility, they caution that India’s electricity generation still heavily relies on fossil fuels.
Gadkari acknowledges that the transition to alternative fuels will take time, but he remains optimistic about the potential of biofuels, compressed natural gas (CNG), and hydrogen.
Auto companies like Bajaj, TVS, and Hero are already planning to manufacture motorcycles with flex-fuel engines, and Bajaj will launch its first CNG bike in the coming months.
The minister himself uses a hydrogen-powered Toyota Mirai, and commercial vehicle manufacturers like Tata and Ashok Leyland have introduced hydrogen-powered trucks.
As India moves towards a greener future, Gadkari’s initiatives aim to reduce the country’s dependence on imported fuel while promoting sustainable transportation alternatives.