The Society of Indian Automobile Manufacturers (SIAM) has emphasised the need for the government to promote the usage of alternative fuels like Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), methane, biodiesel and others to reduce the nation's dependence on imported fossil fuels, reports Livemint.
The lobby group of automobile manufacturers, in a white paper, observed that the production of biofuels in India was still catching up, and therefore has pressed for technological collaborations for the same with nations like the United States, Canada and Brazil could be beneficial.
To boost the demand for vehicles which run on biofuels, the SIAM also recommended a five per cent GST on vehicles run on such technologies, as compared to the current 18 per cent. It also recommended that viability gap funding should be provided to reduce the high cost of the technology.
The white paper also pressed for the government to boost research on combustion, emission development, the environmental impact of fuels and compatible development material.