Niti Aayog proposes incentives to promote LNG vehicles in commercial sector

Niti Aayog proposes incentives to promote LNG vehicles in commercial sector

The Niti Aayog has proposed a host of fiscal and non-fiscal incentives, including extension of the production-linked incentive scheme to vehicles run on liquified natural gas (LNG) and setting up a demand aggregator, to encourage the use of LNG in medium and heavy commercial vehicles. This will help lower carbon dioxide emissions and contribute towards the national goal of a gas-based economy by increasing the share of natural gas in the primary energy mix to 15% by 2030, according to a report jointly prepared with the Netherlands embassy. India’s trucking market, which is expected to expand rapidly, offers immense scope for lowering emissions and encouraging investments for growth. The report suggests setting up a demand aggregator company for buying LNG trucks, similar to Energy Efficiency Services in the electric vehicle sector. The Niti Aayog also calls for reducing the value added tax on the sale of LNG to heavy duty vehicles and bringing the retail LNG price under the ambit of the 5% GST bracket.

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