Heavy industries and public enterprises minister Praful Patel has written to finance minister Pranab Mukherjee, urging him not to impose higher excise duty on diesel cars.
While seeking to dispel concerns raised regarding the environmental impact of diesel vehicles, Patel also sought removal of the additional duty of Rs15,000 imposed on big cars.
“...I would request you not to consider the proposal, if any, for imposition of higher excise duty on diesel cars,” he said in the letter.
Citing examples of the EU, the US and Japan, which are encouraging diesel vehicles for reducing overall fuel consumption levels, Patel said that world-over, diesel technology has been recognised as an important option for meeting the stringent fuel-efficiency regulations.
India is also developing fuel efficiency regulations for passenger cars which seek to significantly improve the fuel efficiency of vehicles, he added.