NITI Aayog for promoting LNG as transport fuel

New Delhi, February 7

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Government think tank NITI Aayog has pitched for providing fiscal and non-fiscal incentives to promote liquified natural gas (LNG) as a transportation fuel in medium and heavy commercial vehicles. In a report titled ‘LNG as a Transportation Fuel in Medium and Heavy Commercial Vehicle’, the Aayog said it had suggested setting up a demand aggregator company for buying LNG trucks, similar to Energy Efficiency Services in the electric vehicle sector. According to the Aayog, India’s rapidly expanding trucking market, which is expected to more than quadruple, from 4 million trucks in 2022 to roughly 17 million trucks by 2050, offers immense scope for lowering emissions and encouraging investments for growth.

The Aayog suggested that priority lane access, for LNG vehicles can be provided as non-fiscal incentives to promote LNG. The Aayog also recommended that heavy-duty trucks running on LNG can be allowed to enter cities to incentivise alternative fuel adoptions, while diesel trucks can be banned and/or levied with entry charges as has been done in Delhi by implementing the environmental compensation charge (ECC) for all diesel heavy-duty trucks.