The Budget for FY23 proposed to impose a differential excise duty of Rs 2 on unblended fuels from October 1, 2022. In her Budget speech, Finance Minister Nirmala Sitharaman said the blending of fuel is a priority of the government and the move to impose the duty is towards encouraging the programme. The Centre had, in 2021, advanced its set deadline to meet the target of 20 percent ethanol blending in petrol from 2030 to 2025.
In line with the announcement, many investments and expansion activities are expected in the biofuel space. Stocks of sugar companies too also turned buoyant with the preponement of the deadline. Sugar, besides other agricultural commodities, are used in producing biofuel.
In other automotive-related news, Finance Minister Nirmala Sitharaman has announced new initiatives to further bolster the adoption of electric vehicles in India. The union minister has stated that the government will be developing special mobility zones for electric vehicles. In the coming fiscal, the government will also formulate a new battery swapping technology in India.
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Ahead of this, the SMEV had put forward a few points that needed to be covered in this year’s budget. The electric mobility sector is a large space that Indian industries can capture before international players invade the market with “cheaper contraptions", SMEV DG, Sohinder Gill, said. “Around the world, the craze for bigger SUVs and higher-powered motorcycles is slowly veining towards compact and smaller electric cars and scooters. Thus, wonders can be done in affordable small cars and scooters segment, just as they are in internal combustion engine vehicles," Gill said.
(With inputs from IANS)
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