Auto LPG suppliers raise concerns over stalled growth of eco-friendly fuel

The apex body for Auto LPG suppliers on Wednesday raised concern over the "stalled growth" of the eco-friendly automotive fuel, saying due to several "detrimental" government polices, India has been missing out on "huge" environmental benefits that can be accrued by shifting to it.

Auto LPG (liquified petroleum gas) is a portable, eco-friendly fuel used in vehicles which in turn helps curb vehicular emissions and pollution.

A statement issued by the Indian Auto LPG Coalition (IAC) said the LPG sector has been seeking support from the government to boost the usage of this fuel, which is present in the country in abundance.

"Auto LPG is eco-friendly and available in abundance. The Auto LPG sector has been seeking policy support from the government. Currently, several policies are stalling the growth of this fuel.

"One of the most detrimental policies that have contributed to curtailed growth of conversions to Auto LPG and CNG are the existing Type approval norms for vehicle conversions to gaseous fuels," said Suyash Gupta, Director General, IAC.

Type approval or certificate of conformity is required to obtain conversion kits in vehicles to switch from one fuel to another.

Gupta told PTI that the Type approval norms in the country are "cost prohibitive" and must be changed.

"These norms of the Ministry of Road and Transport and Highways require extremely cost prohibitive Type Approvals for Auto LPG and CNG conversions to be renewed every three years.

"This punishing practice, that is in complete variance of established global norms, has been extremely detrimental to the conversion industry in India. In fact, the government's cleaner fuel push in the form of the City Gas Distribution project faces the threat of being stalled due to lack of conversion providers, owing to these draconian regulations," he said.

The IAC said while Auto LPG has consistently been cheaper than petrol by almost 45-50 per cent, yet "India has been missing out on huge environmental benefits that can accrue by shifting to Auto LPG."
"The high GST rate is proving detrimental to the conversion industry and hampering the growth of environment friendly transport fuels at a time when our cities are reeling under the impact of harmful vehicular emissions. The GST on conversion kits must be brought under the 5 per cent slab to encourage more conversions."