Jairam: SUVs, no diesel subsidy

Dec 01, 2010 - Age Correspondent |

New Delhi

Environment minister Jairam Ramesh took forward his attack on diesel-guzzling sports utility vehicles (SUVs) and suggested that users of such cars be made to pay full market price for the fuel instead of the subsidised rate.

“Why should they get subsidised fuel meant for farmers,” Mr Ramesh asked while speaking at the 5th Sustainability Summit organised by CII on Tuesday.
“We introduced the diesel subsidy for a certain economic purpose but have ended up with a wholly different purpose,” said the minister, who favoured incentives for firms aiming at sustainable development.
However, the minister clarified that his “deliberate” criticism of the vehicles, which had created a controversy recently, should not be seen as being against the automobile sector.
“I am not knocking the growth of the automotive industry but those who want to use diesel cars must pay full market price for the fuel. Why should they get subsidised fuel meant for farmers,” he said.
Mr Ramesh said there was a need to create an incentive structure from a fiscal point of view and that stimulating sustainable development at the producer-end is absolutely important. The minister also called for an incentive system that favours sustainable development as far as consumers are ready to embrace it.

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