Ministry of Power Draft: Car Makers Can Trade Fuel Efficiency Credits from 2026
New Delhi, 6 July 2026: The Ministry of Power has issued a draft amendment to the existing fuel consumption norms for vehicles in India.
The proposed changes introduce a Credit-Debit mechanism and allow manufacturers to trade credits among themselves. This aims to improve compliance with Corporate Average Fuel Consumption (CAFC) standards.
Main Highlights of the Draft:
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Manufacturers whose average fuel consumption is better than the target will earn credits.
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Those who exceed the target will accumulate debits.
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Companies can exchange or trade credits with other manufacturers.
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Credits can be carried forward within the compliance period (FY 2022-23 to FY 2026-27).
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A “Passbook” system will track credits and debits for each manufacturer.
The government has invited objections and suggestions from the public. Feedback can be sent within 14 days to the Under Secretary, Energy Conservation, Ministry of Power, New Delhi, or by email at saketupsc@gov.in.
This draft is issued under the Energy Conservation Act, 2001 in consultation with the Bureau of Energy Efficiency.
Source: Government of India Ministry Of Power