Union Transport Minister Nitin Gadkari's recent warning to Indian carmakers regarding the production of diesel vehicles has raised concerns in the automotive industry. During the 63rd Annual SIAM Convention in New Delhi, Gadkari expressed his reservations about diesel vehicles and the potential consequences if manufacturers fail to limit their production. This statement led to initial reports of a significant GST (Goods and Services Tax) increase on diesel vehicles, sparking discussions about the government's stance on diesel as a fuel source.
The claim
Many media reports published articles claiming that Union Transport Minister Nitin Gadkari issued a warning to Indian carmakers during the 63rd Annual SIAM Convention in New Delhi. The reports claimed that he urged manufacturers to limit their production of diesel vehicles, stating that if they do not comply, the government may increase taxes on diesel vehicles to a level that would make their sales "difficult."
Additionally, the reports had said that Gadkari would be writing a letter to Union Finance Minister Nirmala Sitharaman on Tuesday evening proposing the additional tax in an attempt to reduce pollution.
Fact check
Union Transport Minister Nitin Gadkari on Tuesday clarified that the Centre has not proposed to impose an additional 10 per cent tax on diesel engine vehicles as media reports suggested.
"There is an urgent need to clarify media reports suggesting an additional 10 per cent GST on the sale of diesel vehicles. It is essential to clarify that there is no such proposal currently under active consideration by the government. In line with our commitments to achieve Carbon Net Zero by 2070 and to reduce air pollution levels caused by hazardous fuels like diesel, as well as the rapid growth in automobile sales, it is imperative to actively embrace cleaner and greener alternative fuels. These fuels should be import substitutes, cost-effective, indigenous, and pollution-free," he said on X (formerly Twitter), soon after reports quoting him proposing the aforementioned tax appeared.
Addressing the 63rd annual SIAM convention earlier in the day, Gadkari termed diesel as a "hazardous" fuel, and noted that the country has to import the fuel to meet the demand, as per reports. He also urged carmakers to reorient their manufacturing to focus on environment-friendly fuels like ethanol and green hydrogen, a step which would facilitate introduction of more electric vehicles.
Contrary to claims made by some media reports, Gadkari didn't warn automakers with a 10 percent GST on sale of diesel vehicles.
