Gadkari's diesel dare spooks auto stocks

“Pollution is a serious problem... I have been preparing a letter for the last 8-10 days to discuss with the finance minister.

- Alisha Sachdev

Today, when I meet the finance minister, I am going to request her that in the coming time, whoever uses diesel engines should be imposed a 10% additional GST so that the transformation will happen quickly... It is my request to the industry to accelerate its transition to clean fuels," Gadkari said at the 63rd annual SIAM convention.

“Along with an increase in automotive manufacturing, import of fossil fuels is also going up and will keep going up. Pollution will adversely affect the citizens of the country. So, please leave diesel and petrol behind and contribute to a pollution free-economy; otherwise, I will urge the finance minister to impose a 10% ‘pollution tax’ on generators to every engine which runs on diesel," Gadkari said, adding, “I am hopeful we don’t have to come to that scenario". Gadkari termed diesel a hazardous fuel, which also contributes significantly to India’s import bill. He urged the industry to take “suo moto" initiative to phase out diesel, or the government will have to take steps to make diesel vehicles “difficult to sell".