February 5, 2023

Car companies will have to pay big, Rs 6,000 crore for this blunder, government bureau in action mode. Bureau of Energy Efficiency set to impose Rs 6000 crore on BEE car companies

The Bureau of Energy Efficiency (BEE) has convened a meeting based on suggestions made by car manufacturers regarding penalties. Auto companies face Rs 6,000 crore fine for non-compliance with CAFE II norms.

Car companies may be fined Rs 6,000 crore.

Image credit source: JustDial

BEE Penalties on Car Manufacturers: A major threat has emerged for the Indian automobile sector. Bureau of Energy Efficiency, an autonomous agency working under the Ministry of Powerthe bee) called a meeting with the car company. Corporate Average Fuel Economy (CAFE II) car companies can be fined up to Rs 6,000 crore for non-compliance. Car companies are therefore concerned and want to present their views before the BEE in this regard.

According to a letter written by BEE director Saurabh Didi to auto stakeholders, the BEE has convened the meeting to discuss queries and suggestions made by car manufacturers on the penalty provisions of the Energy Conservation Amendment Act, 2022, ET reported. Apart from this, the meeting will discuss about the offsetting of loans raised in the first phase and compliance with the rules of the second phase. Nowadays car companies want to solve this issue as soon as possible.

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That will be fined

The meeting is significant as the deadline for submission of scores for the second phase of Corporate Average Fuel Economy Norms (CAFE II) approaches, and non-compliance can result in heavy penalties. Except for four, all automakers could miss fuel economy score targets. Failure to do so will result in fines.

6,000 crore as fine

Car companies can be fined up to Rs 6,000 crore for the current financial year if they fail to comply with the norms. Also, the authority is looking at the development of rules for the next phases, which will be introduced now, to give enough time to the manufacturers to develop and notify them in time.

Recommend formation of technical committee

The BEE recommended the formation of a technical committee to develop fuel efficiency standards for passenger vehicles and monitor CAFE II norms. The committee will have representatives from the Ministry of Road Transport and Highways, Ministry of Petroleum and Natural Gas, and officials of passenger vehicle manufacturers.

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