The Society of Indian Automobile Manufacturers (SIAM) recently organized a conference on ‘Diesel for Future: Economy & Environment’ in New Delhi. The delegates addressed the need to recognize diesel as a viable solution for energy security and lower carbon footprints. Strategies were also suggested in pricing and taxation to enable the Government to integrate diesel as an important energy driver for the transportation sector.
The ministerial session was addressed by the Chief Guest on the occasion, Mr. Praful Patel, Minister for Heavy Industries & Public Enterprises, and the Guest of Honour, Mr. Jitin Prasada, Minister of State for Human Resource Development.
The conference was also addressed by Mr. Vikram S. Kirloskar, Vice President, SIAM, and Vice Chairman, Toyota Kirloskar Motor, Mr. Anant J. Talaulicar, Chairman, SIAM Diesel Group, and CMD, Cummins India, Mr. Lowell Paddock, President & Managing Director, General Motors, Mr. Ashok Dhar, President – Industrial Marketing, Reliance Industries, Dr. Kirit Parikh, Chairman, IRADe, Mr. L.N. Gupta, Joint Secretary, Ministry of Petroleum & Natural Gas, Mr. Sanjay Bandopadhyaya, Joint Secretary, Ministry of Road Transport & Highways, and Mr. Nitin Gokarn, CEO, NATRIP.
In his address, Mr. Praful Patel said: “The perception that diesel is dirty is no more valid. This needs to be changed as contemporary diesel vehicles have higher fuel efficiency; it is as clean as any petroleum fuel”.
Mr. Jitin Prasada said: “Diesel consumption and technologies are here to stay as diesel has emerged as a better fuel, as they are efficient in terms of consumption.”
Mr. Vikram S. Kirloskar observed: “Diesel has an important role as a fuel of the future for the automobile sector. We need to gradually calibrate the prices of petroleum products to a more realistic level.”
Mr. Kirit Parikh highlighted the impact of under-recoveries on the financial stability of the country and suggested liberalizing the price of diesel. Comparing long-term benefits of liberalizing the price of diesel, he stated: “If you free diesel prices fully at one go to market prices, you may find high inflation for the next 3-4 months, but by the 6th month, inflation would get moderated.”
Dr. Parikh also spelt out several alternative measures for addressing the concerns of high diesel subsidies.
Mr. Lowell Paddock remarked: “We firmly believe that diesel is one of the best options available in the automotive sector with 25% better fuel efficiency. Today diesel vehicles are quieter, safer and more ‘fun’ to drive. We feel that every fuel has a role to play, and it should not be influenced by policy prescriptions or separate taxation.”