New Delhi, Feb. 10 -- The proposal of relaxing emission targets for small cars under the next phase of corporate average fuel efficiency, or CAFE-III, norms is still being discussed, power ministry secreatry Pankaj Agarwal told Mint on Tuesday.

"The relaxation for small cars has not been dropped. It will be proposed through a different way by moderating the slope," said Agarwal at the launch of a report by a Niti Aayog panel that called for promoting entry-level cars in emission norms.

The slope refers to a Cartesian graph containing a single line being used to set emissions targets for carmakers. Easing this slope can help relax the targets.

The proposal has already divided the industry on whether small cars deserve special considerat...