Draft policy seeks lower taxes for LNG, CNG vehicles

In a bid to boost India’s gas economy, the ministry of petroleum and natural gas on Thursday released a draft city gas distribution policy, which could be adopted by states to facilitate speedy implementation of city gas distribution (CGD) networks and value-added services. Reduced road taxes and value-added tax (VAT) may also be in the offing for gas-driven vehicles.

The draft policy suggests setting up of a committee, under the chairmanship of the chief secretary, which will help formulate policies and streamline the processes for various permissions to develop the CGD infrastructure.

“It will cause setting up of a suitable single-window clearance mechanism for the same in the state for the promotion development of CGD infrastructure and ease of doing business.