+
Power Ministry Sends CAFE III Draft To PMO, Kumaraswamy Says
POWER & RENEWABLE ENERGY

Power Ministry Sends CAFE III Draft To PMO, Kumaraswamy Says

H D Kumaraswamy, Minister of Heavy Industries and Steel, said that the power ministry has forwarded a proposal on the Corporate Average Fuel Efficiency III norms to the Prime Minister's Office after a meeting with stakeholders organised by the Federation of Indian Chambers of Commerce and Industry. He indicated that the submission followed consultations with industry participants and government officials. The minister did not specify which draft was sent to the Prime Minister's Office.

The Corporate Average Fuel Efficiency regime, first introduced in 2017, sets limits on average fuel consumption and carbon dioxide (CO2) emissions across a manufacturer's fleet with the aim of improving fuel efficiency and reducing emissions. The second phase began in 2022 and the next phase, CAFE III, is scheduled to commence from April 2027. The draft released in September 2025 prompted extensive industry feedback, particularly on the treatment of smaller cars.

The most recent draft would require fleet wide CO2 emissions to be lowered to 91.7 grams per kilometre. It proposes a CO2 allowance of three grams per kilometre for each reporting year for vehicles weighing less than 909 kilogram (kg), with engines up to 1200 cc and measuring under four metres, capped at nine grams per kilometre in total. Debate centres on whether the concession should apply only to cars under the 909 kg threshold or extend to all cars up to 1170 kg, which some manufacturers call the industry average. Officials say the concession is designed to target the smallest segment while protecting overall emissions goals.

Tata Motors Passenger Vehicles Ltd argued that leniency for smaller cars would compromise safety and detract from sustainable mobility efforts. Maruti Suzuki India said concessions should cover a larger segment and cited a 95 per cent share of the sub 909 kg market. The PMO submission followed FICCI facilitated talks and will be examined ahead of April 2027.

H D Kumaraswamy, Minister of Heavy Industries and Steel, said that the power ministry has forwarded a proposal on the Corporate Average Fuel Efficiency III norms to the Prime Minister's Office after a meeting with stakeholders organised by the Federation of Indian Chambers of Commerce and Industry. He indicated that the submission followed consultations with industry participants and government officials. The minister did not specify which draft was sent to the Prime Minister's Office. The Corporate Average Fuel Efficiency regime, first introduced in 2017, sets limits on average fuel consumption and carbon dioxide (CO2) emissions across a manufacturer's fleet with the aim of improving fuel efficiency and reducing emissions. The second phase began in 2022 and the next phase, CAFE III, is scheduled to commence from April 2027. The draft released in September 2025 prompted extensive industry feedback, particularly on the treatment of smaller cars. The most recent draft would require fleet wide CO2 emissions to be lowered to 91.7 grams per kilometre. It proposes a CO2 allowance of three grams per kilometre for each reporting year for vehicles weighing less than 909 kilogram (kg), with engines up to 1200 cc and measuring under four metres, capped at nine grams per kilometre in total. Debate centres on whether the concession should apply only to cars under the 909 kg threshold or extend to all cars up to 1170 kg, which some manufacturers call the industry average. Officials say the concession is designed to target the smallest segment while protecting overall emissions goals. Tata Motors Passenger Vehicles Ltd argued that leniency for smaller cars would compromise safety and detract from sustainable mobility efforts. Maruti Suzuki India said concessions should cover a larger segment and cited a 95 per cent share of the sub 909 kg market. The PMO submission followed FICCI facilitated talks and will be examined ahead of April 2027.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code