Union Transport Minister Nitin Gadkari advocated on Monday for the extension of priority sector financing facilities to firms involved in the production and sale of alternative fuels. The company's products include bioethanol, Compressed Natural Gas (CNG), and Liquefied Natural Gas (LNG). According to Press Trust of India (PTI), he believes that this step will minimise the import of fossil fuels.
The Road Transport and Highways Minister went on to say that the Indian Oil Corporation's (IOC) attempt of raising the calorific value of ethanol to that of gasoline was a success.
PTI reports that "Priority sector loans should include those involved in the development or sale of alternative fuels. I'll discuss the matter with the finance minister and the governor of the Reserve Bank of India."
The priority sector financing facility will make it simpler for enterprises who manufacture or sell alternative fuels to get loans on more favourable conditions from banks.
According to PTI, he claims that by taking this move, India would be able to lessen its dependency on fossil fuel imports.
On Wednesday, Gadkari indicated that he will meet with the Information Technology Minister and encourage telecom companies to utilise ethanol-based generators instead of diesel-based generators to power towers.
According to the minister, the country looks to be experiencing a power deficit since demand has grown as a result of the country's economic development.
Peak power shortages increased last week from 5.24 GW on April 25 to 10.77 GW on April 28, suggesting the influence of numerous factors such as low coal stockpiles at power plants, heatwaves, and other concerns on the escalating electrical crisis, according to PTI.
The adoption of a lockdown to prevent the spread of the fatal coronavirus in April 2020 has an influence on power use and demand. According to PTI, 110.11 billion units of power were utilised in April of this year (before to the epidemic).