At the IFGE India Bio-Energy & Tech Expo held in New Delhi, Union Minister for Road Transport and Highways, Nitin Gadkari, made a compelling case for reducing the Goods and Services Tax (GST) on flex-fuel vehicles to 12%. Speaking at the Yashobhoomi Dwarka convention center, Gadkari highlighted the significance of biofuels in India’s quest for a cleaner, more sustainable energy future. He urged state finance ministers to champion this cause, noting that lowering the GST would significantly enhance the economic viability of flex-fuel vehicles, making them more accessible to the general public.
Gadkari shared insights into his ongoing discussions with various state officials, including the Finance Minister of Maharashtra, emphasizing the need for a collective push towards this goal. He pointed out that flex-fuel vehicles, which currently attract a GST rate of 28% plus a 15% cess, could see a drastic reduction in costs if the proposed GST cut is implemented. Such a move, he argued, would not only promote the adoption of biofuels but also reduce the country’s reliance on fossil fuels, thereby mitigating both environmental and economic challenges.
The minister underscored the importance of flex-fuel technology in India’s energy landscape, citing the readiness of major automobile manufacturers like Tata Motors, Suzuki, and Toyota to introduce flex-fuel vehicles in the market. Gadkari stressed that biofuels, being less expensive and environmentally friendly, offer significant advantages over traditional fossil fuels. He also mentioned ongoing efforts to convert diesel generators to ethanol, which would further boost the biofuel sector and create a more sustainable energy ecosystem in the country.
In his concluding remarks, Gadkari expressed optimism about the future of biofuels in India, calling for a united effort to build confidence among stakeholders. He noted that the successful implementation of these initiatives would not only benefit the environment but also provide a significant boost to the agricultural sector, creating new opportunities for farmers across the country.
