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Centre to make it mandatory for auto manufacturers to offer biofuel vehicles in six months

Thursday, 02 Sep 2021
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India will make it mandatory for auto manufacturers to offer vehicles running 100 percent on biofuels in the next six months. 
 
Such a move will be cost-effective for consumers who are hassled by the high petrol prices. The alternative fuel is also less polluting and saves forex.  The government has taken a decision and will make it mandatory by which there will be a flex-engine. 
 
Within six months, the Centre will give orders for making flex engines mandatory. The state-run oil marketing companies have already been ordered to offer biofuels at the same facilities as the one selling petrol and diesel. 
 
The consumers will have a choice between petrol and bio-ethanol and a switch over to the alternative is also essential for the country because of the surplus production of crops like rice, maize, corn and sugar, from which bio-ethanol is made.
 
In many of the crops, the minimum support price (MSP) offered to farmers is higher than the commercial price or the one in international prices, making it essential for diverting the harvest for the overall betterment of the country. 
 
Manufacturing of electronic vehicles is also on at a fast pace across categories and estimated that there will be a flood of such automobiles on roads in a year. Efforts are also underway on using hydrogen as a fuel, and to tap gas from sea water and sewage water.
 
Meanwhile, the National Highways Authority of India (NHAI) has already been undertaking monetisation efforts through which it has raised over Rs 40,000 crore, and targets raising Rs 1.60 lakh crore from the roads sector included in the national monetisation plan announced earlier in September 2021.
 
NHAI will raise the money either through the toll operate transfer (TOT) model that has been used previously or also through the infrastructure investment trust (InvITs) which is to be floated soon.
 
NHAI is giving smaller bundles for monetisation, which will entail commitments of around Rs 500 crore as against Rs 5,000 crore earlier. 
 
The regular monetisation efforts through diverse instruments will also help NHAI to continue with its ambitious plans on road building, which includes constructing 26 express highways across the country.
 
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