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Alternative Fuel in Commercial Vehicles to Hit 45% by FY30: ICRA

UPSC / SSC current affairs note · IR

IREconomyScience and Technology

Why in news

ICRA projects that alternative fuel penetration in India's commercial vehicles will reach 40-45% by FY30, driven by cost benefits and stricter emission norms. This marks a significant shift towards cleaner fuels like CNG, LNG, and electric vehicles.

Background

India has been promoting alternative fuels to reduce vehicular emissions and dependence on fossil fuels. The government has implemented stricter Bharat Stage (BS) emission norms and incentives for electric vehicles under FAME scheme.

Key facts

in5points
  1. CNG and LNG use in commercial vehicles will reach 30-35% by 2029-30.

  2. Overall alternative fuel penetration (including electric) to hit 40-45% by FY30.

  3. ICRA report cites cost benefits and stricter emission norms as drivers.

  4. Alternative fuels include CNG, LNG, and electric vehicles.

Prelims pointers

  • ICRA: Investment Information and Credit Rating Agency of India
  • CNG: Compressed Natural Gas
  • LNG: Liquefied Natural Gas
  • FAME: Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles
  • BS norms: Bharat Stage emission standards

Mains angles

  • Discuss the role of alternative fuels in reducing vehicular pollution and India's energy security.
  • Critically examine the challenges in transitioning commercial vehicles to alternative fuels.
Alternative Fuel in Commercial Vehicles to Hit 45% by FY30: ICRA — UPSC IR · in5points