New Delhi: Indian Auto LPG Coalition (IAC), the nodal body for the promotion of Auto LPG in India, has questioned the ‘disproportionate’ policy focus on electric vehicles in the war against carbon emissions by vehicles, saying running automobiles on LPG offers equally worthy solution.
Almost 30 crore vehicles on Indian roads cannot be wished away, for which electric is simply not an option, it said adding with lower entry barriers, auto LPG far outshines EVs in terms of infrastructure investment in the immediate term.
While attaining self-reliance for lithium-ion or equivalent battery technology is too far away, auto LPG is way more affordable than buying new expensive EVs.
More importantly, 60 per cent of electricity still comes from fossil fuels which does not paint EVs in the best light, IAC said in a statement emphasising the need to consider well-to-wheel emissions for Auto LPG.
“There has been a periodic spotlight on the electric vehicles in the country envisaging a perfect future when so-called ‘clean’ electric vehicles would replace the heavily polluting carbon-based popular fuels such as petrol and diesel in our modes of transport and mobility. Days ago, the government announced another allocation of Rs 1,000 crore for the development and installation of charging infrastructure under the phase II of Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME) scheme,” it said.
The government recently extended the second phase of FAME by two years until March 2024.
“However, amidst this sustained flurry of announcements on electric vehicles, questions continue to arise as to why this special attention is reserved only for electric vehicles – a project which is not only riddled with huge infrastructure and budgetary costs but also still appears a long way from reality on the ground at least in the short-to-middle term– while overlooking auto LPG, an alternative fuel filled with more promise in terms of infrastructure requirement, the costs of transition and even environment,” IAC said.
The association said while it welcomes the long-term focus of government to set the ball rolling for a minimally carbon-intensive vehicular fuel policy and the tilt towards electric vehicles (EVs), it is totally baffling that the government continues to ignore the immediate potential that auto LPG holds out.
“The government’s plans to set up 4500 EV charging stations across the country is woefully inadequate since there is a need for at least 4 lakh charging stations in order to meet its own target of having 2 million EVs on the roads by 2026,” IAC said.
In contrast, auto LPG already has almost 1500 stations for refilling across 600 cities in the country. “And that too without almost any government support”.
Further, India’s import dependence on lithium-ion batteries, without which EVs is an absolute non-starter, is unlikely to ease immediately.
“With China dominating the world market for raw material, it becomes even more complicated and unpredictable,” IAC said. “On the other hand, thanks to the drive for household consumption of LPG, an extensive infrastructure exists in the country from before. With 2.5 million auto LPG vehicles already running on Indian roads, it makes almost perfect sense to give an instant policy boost to this fuel.”
Suyash Gupta, Director General, IAC said cost-wise, instead of buying expensive EVs, it becomes far easier for a consumer to get their existing vehicles retrofitted with LPG conversion kits.
“All that the government needs to do is to ease the Type Approval norms governing the retro-fitment of LPG/CNG conversion kits and bring them in line with the European norms,” he said.
Currently, the Indian rule to renew Type approvals for auto LPG conversion kits every three years is hugely cost-prohibitive as well as a disincentive and a deterrent from both manufacturer and consumer standpoints, he said adding the government must also consider shifting the GST slabs of conversion kits from 28% to 18% and of auto LPG from 18% to 5% with a view to stimulate demand on the ground.
“In fact, even environmentally speaking, electric vehicles are not really as environmentally friendly as they are being made to be, especially in the immediate term. Almost 60% of electricity in the country is still produced by carbon-emitting fossil fuel-based sources. On the other hand, auto LPG has a zero global warming potential with negligible emissions of nitrogen oxides and particulate matter,” Gupta added.