Bureau of Energy Efficiency to discuss penalty provision with Auto Cos

The Bureau of Energy Efficiency (BEE), a statutory body under the Ministry of Power, has called a meeting of auto industry stakeholders on Tuesday to discuss the queries and suggestions made by manufacturers on the penalty provision in the Energy Conservation Amendment Act, 2022. ET has seen the letter written by BEE director Saurabh Didi to the industry stakeholders.

Among other things, the meeting has also been called to discuss offsetting of credits earned in Phase I for compliance of the regulations in Phase II. The meeting is critical given that the deadline for submitting the scores under the second phase of corporate average fuel economy regulations (CAFE II) is drawing closer and there is a hefty penalty involved in the event of non-compliance.

Except for four, the carmakers are likely to miss the targeted fuel economy score, ET reported earlier this month. The manufacturers that have not met the regulations may end up paying a cumulative penalty of up to ₹ 6,000 crore for the current fiscal year, ET had reported.

Page 10 (Auto cos)

The BEE has called the meeting based on the suggestions made by vehicle manufacturers on the penalty provision, which they wanted to be addressed on priority. Besides this, authorities are looking at the development of regulations for subsequent phases that will also be initiated so that they are developed and notified in time to provide sufficient time for manufacturers.

Therefore, the BEE has recommended setting up a technical committee for the development of fuel efficiency standards for passenger cars and monitoring the implementation of the CAFE-II rules. The committee will have representatives from the Ministry of Road Transport and Highways, Ministry of Petroleum and Natural gas and officials of passenger car makers.

A text message to BEE director Didi seeking comment remained unanswered at press time Monday.

An official from the roads ministry confirmed Tuesday’s meeting. “This is one of the several meetings that will take place ahead of 31 March. The first round is more to understand the concerns and the issues involved. It’s not going to be a conclusive one,” said the official.


Business Asia
the authorBusiness Asia

Leave a Reply