No serious LPG shortage reported by auto-part makers so far: Govt

New Delhi: The Central government on Monday said it was closely monitoring the LPG supply situation for the auto-component industry, and asserted that no serious shortages had been reported so far.

Insisting that the Ministry of Heavy Industries was in constant touch with the Auto Component Manufacturers Association (ACMA), a senior official said the government was taking all necessary steps along with the Ministry of Petroleum to ensure an uninterrupted gas supply.

“Component manufacturers have not reported any serious LPG supply shortage,” Ministry of Heavy Industries Additional Secretary Hanif Qureshi told reporters here.

“LPG is used in the component-manufacturing industry, and the government is in touch with the ACMA and other industry associations. We are taking all measures to ensure adequate supply is maintained, in coordination with the Ministry of Petroleum,” he said.

Regarding alternative fuels and the emphasis on electric vehicles, the official observed that, apart from the Prime Minister's E-DRIVE scheme, which provides incentives to consumers for purchasing electric vehicles, the PLI auto scheme covers manufacturers.

"So both these schemes continue, along with the scheme to promote the manufacturing of rare-earth magnets, which will also improve the supply chain," he said.

Qureshi also said the government was committed to using biofuels wherever possible, with 20% ethanol blending already in place.

"There is also a programme of flex fuels, and the industry has already come up with models which are compliant with it. Flex fuels mean that engines from E-20 to E-85 can take that blend without any degradation in performance. So, we are seeing the development of four-wheelers as well as two-wheelers that are capable of using flex fuels. We are confident that the use of flex fuels will grow, which will also ease the pressure on the import of crude," he added.

Qureshi also talked about the measures the Ministry of Heavy Industries was taking to boost the adoption of electric vehicles in the country, encourage indigenous automobile production, address supply chain issues due to the West Asia crisis, and improve supply chain resilience.