Govt to take consensual view before implementing new fuel-emission norms

The government will take a consensual view before implementing the CAFE-III rules, which seek to limit average fuel consumption and carbon emissions across the entire model range of an automobile manufacturer, Union Power Minister Manohar Lal said on Sunday.

The Corporate Average Fuel Efficiency-III (CAFE-3), introduced by the Bureau of Energy Efficiency (BEE), is proposed to be effective from April 1, 2027, to March 31, 2032. The government has sought feedback on the draft rule from stakeholders.

Automobile makers have mixed views on its implementation framework, with some demanding a relaxed emission mandate for small cars based on weight and affordability. Those opposing the relaxation criteria argue that such a move would lead to a compromise on safety standards and hamper the country's clean energy transition.

The draft norms, which were brought for discussions in September 2025, suggested relaxed conditions for small cars with an unladen mass up to 909 kg, engine capacity not exceeding 1200 cc, and length not exceeding 4000 mm.

Addressing the 25th Foundation Day of BEE here on Sunday, the power minister said that there are different types of consumers and the government has to consult them.

"They have different priorities. There are clash of views also. They push for their views. We have to take a decision at some point. We try to bring a consensus on the decision. Things don't happen unanimously because everybody has a vested interest. We will take a consensus view and soon implement it," he said.

Last week, Union Heavy Industries Minister H D Kumaraswamy told reporters, "We already had a meeting with stakeholders and the power ministry. The power ministry, according to my information, now, after the meeting with stakeholders, has sent the proposal to PMO."  The CAFE norms, started from 2017, sets limit on average fuel consumption and CO2 emissions of a manufacturer's overall fleet.

The CAFE-2 began in 2022, and the next phase CAFE-3, is likely to start from April 1 2027.

No leniency should be granted to small cars in the corporate average fuel efficiency (CAFE-3) norms on the basis of weight and affordability, as it would compromise safety features while distracting from concrete action towards sustainable mobility, Tata Motors Passenger Vehicles Ltd Managing Director & CEO Shailesh Chandra had said in November.

However, market leader Maruti Suzuki India has been vocal in proposing such a concession for small cars, and its Chairman R C Bhargava had argued that the idea behind CAFE norms was to make big cars improve fuel efficiency and reduce emissions.

At the BEE foundation day celebrations, the power minister highlighted India's progress in meeting its climate commitments and strengthening energy efficiency as a core pillar of national development.

He said that India has reduced the emissions intensity by 36 per cent of its GDP from 2005 levels and achieved 52 per cent of non-fossil fuel installed capacity ahead of the 2030 target.

Emphasising the way forward, he underscored the role of energy efficiency in achieving the vision of Viksit Bharat @2047, while drawing attention to emerging areas such as data centres and Artificial Intelligence, which require efficient and sustainable energy management solutions.

On the occasion, the BEE@25 logo was formally released to mark BEE's entry into its 25th year.

Also, the portal -- http://www.rco.beeindia.gov.in -- was unveiled as a significant step towards strengthening monitoring, facilitating compliance, and streamlining coordination among stakeholders under various energy efficiency programmes.

The minister also launched the BEE Star Label Mobile Application, developed in collaboration with CLASP.

The application will enable consumers to scan the QR code affixed to star-labelled appliances to instantly access authentic product information, including energy performance, model details, and compliance status.