Nitin Gadkari wants states to push for GST cut on flex-engine vehicles —‘MDs of Tata, Suzuki & Toyota have decided to…’

Union Minister of Road Transport and Highways Nitin Gadkari called on state governments to advocate for a reduction in Goods and Services Tax (GST) on flex-engine vehicles. Gadkari emphasised the need for collaborative efforts to promote these eco-friendly vehicles by lowering the GST to as much as 12 per cent on flex engines, cars, and scooters.

"We will try to convince all the finance ministers. Yesterday I had the opportunity to discuss with the finance minister of Maharashtra and I told him, you please go to the meeting and put up this proposal for reducing GST up to 12 per cent on flex engines, cars, and scooters," he said.

Addressing IFGE's India Bio-Energy and Tech Expo in New Delhi, the Union minister added that factors such as economic viability, proven technology, availability of raw material, and marketability of the finished product are in favour of the development of these engines. Gadkari said that developing flex-fuel engines is the target of the government, and we have the "proven technology" to make it possible. 

"I feel that now the flex fuel is very, very important. Already the managing directors of Tata, Suzuki and Toyota have decided to start flex engine car in the country," the Union minister stated.

Highlighting the potential benefits of flex engines, Gadkari pointed out the significant market opportunities and the advantages of biofuels over fossil fuels. "The flex engine is the ultimate target. As far as the market is concerned, there is huge potential. Everywhere, as far as a comparison between fossil fuel and biofuel, in the Indian scenario, the cost of biofuel is less and there is no pollution. So that is the important reason that it is going to be advantageous to the common man also," he added.

Gadkari also mentioned that several vehicle manufacturers, including Bajaj, TVS, and Hero, have already developed models equipped with flex engines capable of running on 100 per cent ethanol. He further noted ongoing efforts by generator manufacturers to transition from diesel to ethanol, with some companies aiming to convert telecommunication towers to use ethanol instead of diesel, which would significantly reduce diesel consumption.

Additionally, Gadkari underscored the importance of increasing biomass production to support biofuel generation, stating that the raw materials needed are readily available in India. "I feel that this is the time for the country that we have got very good potential. We need to create positivity and confidence in the minds of the stakeholders. Now things are open. The market is going to increase. Availability of ethanol, again, I am very much thankful to Hardeep Puri ji, our Minister group is there. We already have a clear policy now," Gadkari concluded.