Maruti Suzuki Chairman R C Bhargava has advocated for stronger government incentives for biogas-powered vehicles, arguing they should receive preferential treatment over hybrids. According to reports from Business Standard, Bhargava stated that vehicles using biogas should be given more incentives in GST or concessions in proposed Corporate Average Fuel Efficiency norms than what is offered to other vehicles, such as hybrids. He emphasized that biogas can be used independently as compressed biogas (CBG), a substitute for compressed natural gas (CNG) for powering vehicles, and can also be blended with fossil fuel-based CNG. Speaking to Business Standard, Bhargava noted that biogas has not taken off at all in the country despite its immense potential because there is no incentivisation for companies to invest in plants that convert easily available agricultural waste into biogas. He pointed out that an earlier incentive scheme under which oil marketing companies guaranteed offtake of CBG from producers did not succeed, but a new policy has now been worked out, which he described as more attractive.
Bhargava highlighted several key advantages of biogas over other alternatives, as reported by Business Standard. He noted that unlike EVs, the process of biogas conversion also produces organic manure, which is needed for agriculture. Additionally, biogas has the added advantage of generating net-zero carbon emissions. The chairman pointed out that unlike EVs, the process of biogas conversion also produces organic manure, which is needed for agriculture. He emphasized that biogas can be used independently as compressed biogas (CBG), a substitute for compressed natural gas (CNG) for powering vehicles, and can also be blended with fossil fuel-based CNG. Bhargava rejected demands by some original equipment manufacturers (OEMs) seeking tax parity between the two, stating that GST on hybrids should be higher than on EVs, but lower than on petrol and diesel vehicles, which are most polluting.
On the push by some OEMs for GST on hybrids on par with pure battery EVs, Bhargava maintained his stance that there should always be a differential in GST between electric and hybrids. According to Business Standard, he argued that EVs should always have lower GST, even though they may not effectively ensure zero emissions, as charging stations get electricity from coal-powered units. He rejected demands by some original equipment manufacturers (OEMs) seeking tax parity between the two, stating that there should always be a differential in GST between electric and hybrids, with EVs continuing to attract lower taxation. Bhargava was responding to the growing challenge facing the country, which has come into sharper focus because of the US-Iran conflict and the oil crisis, on how India should accelerate the shift away from heavily imported fossil fuels towards electrification.
Regarding the government's decision to notify higher ethanol-petrol blends of E30 — containing 30 per cent ethanol and 70 per cent petrol, compared to the earlier E20 blend (20 per cent ethanol and 80 per cent petrol) — Bhargava expressed support for the move. As reported by Business Standard, he stated that Maruti Suzuki has the technology to move to E30 from E20, and it will help reduce emissions. However, he pointed out that existing vehicles designed for a 20 per cent ethanol blend can use E30 without any deterioration in vehicle performance. The chairman noted that we have the technology to move to E30 from E20, and it will help reduce emissions.
Despite many companies demonstrating the commercial viability of flex-fuel vehicles, Bhargava ruled out large-scale potential for such technology. According to Business Standard, he stated that the problem is that there is not enough ethanol available from processing sugarcane, maize, and other feedstock. Such high levels of ethanol blending would require very large volumes, making flex-fuel vehicles impractical for India's current ethanol production capacity. In flex-fuel vehicles, ethanol blending can rise to between 85 per cent and 100 per cent. Several automobile companies have already showcased such vehicles, but Bhargava emphasized that such high levels of ethanol blending would require very large volumes.
