Govt eases fuel efficiency targets in new draft policy
New Delhi, July 17 -- The Centre has eased fuel efficiency targets for carmakers in its latest draft of the corporate average fuel efficiency (CAFE) III norms released on Thursday, following pushback from the industry on the steep targets outlined in the previous draft released last September. The new draft, which has been released for public consultation for 21 days, relaxes overall fleet fuel efficiency targets by 7-10%, making compliance relatively easier for manufacturers with larger, less fuel-efficient models.
It also introduces a system for carmakers to buy credits from the government to help meet their targets, and removes benefits for small cars that were mentioned in the previous draft.
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