NEW DELHI: The penalty imposed on nine automakers that failed to meet Corporate Average Fuel Efficiency (CAFE-2) targets for three years – from FY23 to FY25 – has been revised to Rs 2,728 crore, according to the Power Ministry’s presentation to the PMO last week.
Earlier, the penalty was estimated at Rs 7,800 crore.Earlier, the penalty was fixed at Rs 10 lakh per OEM plus Rs 25,000 per vehicle manufactured for failure to comply with the norms below 0.2 liters per 100 km and Rs 50,000 per unit for violation exceeding 0.2 liters per 100 km. Under the new calculation, in April-December FY23, the penalty was set at Rs 37.5 lakh as the benchmark for all OEMs. This resulted in a reduced sentence.TOI has learned that the ministry also said in its presentation that the credit and debit register of each original equipment manufacturer (OEM) will be created and maintained by the designated authority.
This will ensure better enforcement of penalties and judgments besides providing greater clarity as the government works to finalize the CAFE-3 standards, officials said.
Blues Café
In its presentation, the ministry said surplus credits generated by the manufacturer could be accumulated during the same block period — the first three years and then two years during the 5-year implementation period — for compliance. OEMs with deficit balances can obtain credits from other manufacturers with surplus balances. Manufacturers who still have credit deficits will face penalties.The Prime Minister’s Office had previously asked the Ministries of Electricity and Roads to come up with a clear mechanism to recover penalties imposed on automakers. CAFE-2 is effective from FY23 to FY27 and the next phase is scheduled for FY28 to FY32.