The government's premier think tank has also recommended promoting mass transport system, stating that its progress will make private transport more efficient
Looking at improving air quality, NITI Aayog has batted for higher tax on big cars and SUVs in its newly-released draft National Energy Policy.
The government's premier think tank has also recommended promoting mass transport system, stating that its progress will make private transport more efficient.
"Further widening taxation differential between cars (higher tax for big cars/ SUVs) will promote adoption of more fuel-efficient cars," the draft policy states. The policy is up on the NITI Aayog website for public feedback till July 14.
The draft states poor air quality in India, especially in urban centres needs bold action through energy policy which is part of the overall environment strategy, adding that the policy to promote electric and hybrid vehicles needs to be supported.
The policy has proposed putting in place regulators for coal, oil and gas (upstream) like that in electricity at present.
The draft has also suggested corporatising the seven units of Coal India Ltd to create more competition, which it adds, will reduce coal prices. It has also stated that the coal sector should respond in accordance with the power demand.
The draft has recommended separating the ownership of the power distribution companies from the distribution grid.
"Discoms would continue to own the grid, while actual distribution or sale of electricity would pass on to private agents," the draft states, adding that the move will ensure that customers will have the freedom to choose their electricity distributor from among various private agents as in telecom sector and go for the one who offers the best deal.
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