Auto component manufacturers have not reported any critical LPG supply shortage, according to a statement from a senior official on Monday. He further said that the Centre is in comunicating with industry body ACMA (Automotive Component Manufacturers Association of India) to make sure of sufficient gas supply and to prevent any supply chain disruptions.
Addressing an inter-ministerial briefing here on the recent developments in West Asia, Additional Secretary in the Ministry of Heavy Industries, Hanif Qureshi, said that regarding supply chain issues, the ministry is in constant touch with the automobile industry and is making appropriate efforts to address them.
The government has also advised the industry to switch to cleaner fuels like electric furnaces and PNG where available.
Responding to media queries, Qureshi said, "LPG is used in the component manufacturing industry, and the government is in touch with ACMA (Auto Component Manufacturers Association) and the industry associations. We are taking all measures to ensure that adequate supply is there, along with the Ministry of Petroleum, and no serious shortages have been reported".
"In fact, if we look at the production base of March, then about 15 to 16% increase in the production of vehicles has taken place in the month of March".
The official noted that apart from the PM's E-DRIVE scheme, which offers incentives on EV purchases, the PLI auto scheme supports manufacturers.
"So both these schemes continue, and along with the Scheme to promote the Manufacturing of Rare Earth Magnets, that will also improve the supply chain, and it will be a push towards AatmaNirbhar Bharat," he observed.
The government is committed to maximizing bio-fuel use, with ethanol blending already at 20%, Qureshi said.
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"There is also a program of flex fuels, and the industry has already come up with models which are compliant with flex fuel. So the Flex Fuel means that from E-20 to E-85 the engines can take that blend without any degradation in performance. So we are seeing development of four-wheelers as well as two-wheelers, which are capable of using flex fuels. So we are confident that the use of flex fuels will also grow, which will also ease the pressure on the import of crude," he added.
The Ministry of Heavy Industries is taking steps to promote electric vehicles, boost local production, tackle West Asia crisis-related supply chain issues, and enhance supply chain resilience, Qureshi said.
Under the PM E-DRIVE scheme, the subsidy period for three-wheeler e-rickshaws was until March 2026, which has now been extended by two years to March 2028. Electric two-wheelers are used by many people. The terminal date for their subsidies has also been extended by another three months till 31 July 2026, the official said.
The government has revised the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme to set new deadlines and unit caps for e-scooters and e-rickshaws.
Besides, Qureshi said, the phased manufacturing programme (PMP) is used to determine subsidy levels for various categories of electric vehicles. It encourages indigenous automobile production.
"Considering the supply chain issues due to the West Asia crisis, the PMP guidelines for trucks and buses have been relaxed by six months now; the new date of Sept. 1, 2026, has been given," he added.
Qureshi said the Heavy Industries Ministry is also making efforts to improve the resilience of the supply chain.
"For this, the issue of rare earth magnets has been highlighted, as you would know, that with a total budgetary outlay of Rs 7,280 crore, the rare earth permanent magnet manufacturing scheme was notified by the ministry. This targets the establishment of 6,000 MTPA of domestic integrated manufacturing capacity."
"Recently, on 7 April, a pre-bid conference was held. The tenders have been floated. RFP (Request for Proposal) has been floated on the CPP portal, and more than 25 prospective bidders attended the meeting. For supply chain issues, the ministry is in constant touch with the automobile industry, and is making appropriate efforts to address the same," he said.
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