The bone of contention between the two sides is the "Corporate Average Fuel Economy" or CAFE. The main aim of the proposed standards is to gradually bring down "fuel efficiency per gram of carbon dioxide emission to the vehicle weight". This is CAFE.
Sources said BEE has proposed that fuel economy of 128 gms/CO2 per km be achieved by 2015. The industry, however, feels that this is too strict and the limit should be 142 gms/CO2 per km. BEE has told the car manufacturers that this would be too high and the government could at best keep a target of 135 gms/CO2 per km. This is unacceptable to car manufacturers and now they have walked away from the table. The Government is likely to stick to the figure of 135 in the final draft of norms.
After a consultation process spanning over two years ended in a deadlock with car manufacturers, the government has finally decided to frame auto fuel efficiency norms within this month and put them out for public objections and comments in May.
Over the last one year, the government and the car manufacturers have been trying to reach an agreement over a number of aspects like proposed carbon dioxide emission targets, the year of introduction for efficiency norms and five-star rating system.
A technical committee, comprising industry experts and officials of Ministry of Road Transport and Highways (MoRTH) and Bureau of Energy Efficiency (BEE) under the Power Ministry, was formed to formulate a final draft of fuel efficiency standards for passenger cars under Energy Conservation Act.
Last week, the committee's final attempt to address the concerns of car manufacturers failed.
Now, the government would frame the norms and put it out for public comments for 60 days. With the introduction of these standards for motor vehicles, India hopes to bring down emissions by 2% every year.
Source: http://economictimes.indiatimes.com/news
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