Commercial vehicles run on alternative fuels will not require permit: Minister

Union Road Transport and Highways Minister Nitin Gadkari on Thursday announced that commercial vehicles running on alternative fuels such as ethanol, methanol, biodiesel and CNG will no longer require permits to operate.

Speaking at the 58th annual convention of the Society of Indian Automobile Manufacturers (SIAM), Gadkari said the exemption would also cover electric vehicles and could create new business opportunities for the automobile and transport sectors.

“I am happy to announce that we have decided that electric vehicles and all vehicles which operate on Ethanol, Methanol, Bio-diesel, CNG will not require a permit,” Gadkari said.

The minister said transport ministers from all state governments had unanimously supported the proposal. He added that the states would now move towards implementing the decision, after which electric auto-rickshaws, buses and taxis would be able to operate without the existing permit requirement.

The move is expected to reduce regulatory hurdles for operators and could encourage greater adoption of cleaner fuels in public and commercial transport. It could also provide manufacturers and transport businesses with more flexibility as India explores alternatives to conventional petrol and diesel-powered vehicles.

Gadkari also announced that the central government was planning to scrap the requirement for speed governors on vehicles.

“We don't need it as we are developing good roads. There is no need to limit the speed artificially,” he said.

Instead, the minister urged automobile manufacturers to focus on developing better engines and producing high-performance vehicles.

The announcements come as India was seeking to diversify its transport fuel mix and reduce dependence on conventional fossil fuels. Greater use of CNG, biofuels and electric power in commercial transport could also support efforts to reduce fuel consumption and urban emissions while creating new opportunities for the automobile industry.