Minister for Road Transport and Highways Nitin Gadkari on Friday appealed to the industry to invest in public transport propelled by alternative fuel and electricity to help the country reduce its oil import bill.
“Our import bill is nearly ₹8 lakh crores. This is a big challenge for the economy. So, our government has taken a decision for alternative fuels like ethanol, methanol, bio-diesel, compressed natural gas (CNG) and electricity. We are ready for anything that is a substitute for imports, cost-effective, pollution free and indigenous,” Mr. Gadkari said at the MOVE Summit organised by government think-tank NITI Aayog.
The Minister said that initiatives need to be taken to curb pollution and that that two-wheelers in the country alone consume 60% of petrol.
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“What the consumer needs, what the society needs, what the country needs is very important... I want you to look at public transport on alternative fuel and electricity,” Mr. Gadkari said.
The Union Minister had on Thursday announced that autos, taxis and buses that run on electricity and bio-fuel will be exempt from seeking a permit.
Mr. Gadkari was addressing top executives of Indian and global companies, including TATA Motors, TATA Power, Mercedes Benz (India) , Maruti Suzuki, Hero MotoCorp, Honda India, Ford and Spicejet.
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Replying to a query, Pawan Munjal MD & CEO Hero MotoCorp said electrification is a big opportunity. However, a clear policy roadmap is needed. “We clearly need some direction in terms of timing, how the infrastructure will come around… so there are various challenges.”
He further added that there are many other pollutants other than the auto industry. “Rest of the people who pollute should also be managed and managed real quick. Those are things we don’t see everyday – construction, crop burning, cooking etc.”
He stressed that given the Indian auto industry’s volumes, the transition from internal combustion engine to electric or any other fuel needs to be very well thought out.
Speaking at the same session, R. C. Bhargava chairman of Maruti Suzuki India said, “I don’t think pollution is the first priority for electrification. I think the priority for electrification is to reduce the import of oil.”
He also pitched for promoting the use of hybrid vehicles and said, “If you look at the numbers, India today sells 3.5 million cars a year. Even if EVs comprise 30% of the market by 2030, it would mean producing three million electric cars by then. This is an enormous challenge.”
He added that between now and 2030, about 85% of total vehicles used will be non EV. “You can’t ignore this 85% per cent. That is why you need all technologies.”
Earlier in the day, Osamu Suzuki, chairman and COO of Japanese giant Suzuki Motor Corporation at an earlier session said, “I think it would be essential to promote not only EVs but also hybrid and CNG vehicles too. In this sense, we seek the kind support of government in terms of policy formulation.”