New Delhi, July 6 -- The government is weighing a proposal to reward carmakers that have topped India's fuel-efficiency requirements since financial year 2023 by allowing them to sell surplus compliance credits to peers that have missed their targets. If implemented, the proposal would create a new revenue opportunity for companies such as Tata Motors Passenger Vehicles and Maruti Suzuki, who have met their targets over the past few years.

A draft notification by the power ministry dated 19 May, shared with industry stakeholders and reviewed by Mint, proposes a 'credit-debit passbook system', under which manufacturers that exceeded their Corporate Average Fuel Efficiency (CAFE) Phase II targets between FY23 and FY27 can sell their surplu...