LNG as a Transportation Fuel in Medium and Heavy Commercial Vehicle (M&HCV): NITI Aayog report | Current Affairs | Vision IAS
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    LNG as a Transportation Fuel in Medium and Heavy Commercial Vehicle (M&HCV): NITI Aayog report

    Posted 10 Feb 2024

    Updated 16 Mar 2024

    2 min read

    • It is the outcome of NITI Ayog and the Embassy of Netherlands bilateral cooperation for energy transition and decarbonizing agenda.
    •  Liquefied Natural Gas(LNG) is a clear, colourless, non-toxic liquid that forms when natural gas is cooled to the liquid state, at about -162 degrees Celsius for shipping and storage.

     

    • Need of LNG push for M&HCV: 
      • Achieving the target of Net Zero by 2070 through CO2  emission reduction.
      • Reducing oil import dependency.
      • India's rapidly expanding trucking market (expected to more than quadruple in 2050 from 2022)
      • Contribute to a Gas-based economy (achieving a share of natural gas in the primary energy mix to 15% by 2030). 

     

    • Challenges in the adoption of LNG: high initial cost compared to traditional diesel trucks, lack of availability of LNG retail outlets, hesitancy in the market, etc.

     

    • Recommendations in the report
      • Demand aggregator for deployment of LNG-based vehicles aiming at cost reduction with higher order volumes.
      • Fiscal Incentives like bringing LNG under GST, revised depreciation schedules, toll fee exemption, production-linked incentives.
      • Non-fiscal incentives like preferential right of way, "ECO" labels, priority lane access, Fuel cards, etc.

     

    Government initiatives

    • Inclusion of  LNG as transport fuel by modifying Central Motor Vehicles Rules(1989) in 2017
    • Draft LNG policy to increase LNG usage in the transportation and mining sector.
    • Allowed retrofitting of the diesel vehicles to LNG-fueled vehicles.
    • Tags :
    • LNG
    • LNG as a Transportation Fuel
    • Green Mobility
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