BEE may rationalise technology credits

The Bureau of Energy Efficiency (BEE) is planning to rationalise the list of technologies that carmakers can classify as "fuel-saving" to claim "technology derogation credits" while calculating the average emission of carbon dioxide in a fleet of vehicles, Business Standard has learnt.

- DEFRAK RATFI

This will be under the upcoming norms on corporate average fuel efficiency-3 (CAFE-3).

Several fuel-saving technologies are now widely used in India's passenger vehicles.

These include idle start-stop systems in about 54 per cent of cars, regenerative braking in 47 per cent, tyre-pressure monitoring systems in 63 per cent, and six-speed or higher transmission in 59 per cent -and these will not qualify for credit in the proposed CAFE-3 norms, officials said.

CAFE norms require carmakers to limit the average carbon-dioxide emission of all passenger vehicles they sell in a year. Emission is measured in grams per km (gm/km). The proposed CAFE-3 norms, under discussion and expected to be notified soon, will be in force from FY28 to FY32.

Officials said that not only was the list of eligible technologies being rationalised, but the level of benefits too was proposed to be reduced.

While the September 2025 draft had proposed allowing a technology-derogation benefit of up to 9 gm/km, the final notification is expected to cap it at 6 gm/km, with each approved technology eligible for a benefit of 1gm/km.