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Updated Aug 20, 2025 · 19:19
Business India News Updated Aug 20, 2025

Green Vahan advisory gives huge boost to LPG and CNG retro fitment industry

The government has introduced new guidelines that streamline the approval process for LPG and CNG vehicle conversion kits. All verification will now happen digitally through the Green Vahan Sewa Portal, eliminating physical paperwork. This move is expected to significantly reduce delays and curb fraudulent approvals in the industry. The Indian Auto LPG Coalition has welcomed this change as a major boost for small and medium enterprises.

Mumbai, Aug 20

The Indian Auto LPG Coalition (IAC) on Wednesday welcomed the government's new guidelines that streamline the verification process for installation of LPG or CNG kits in vehicles.

The new guidelines mandated the uploading of 'Type Approval' and 'Layout Approval' Certificates for LPG and CNG kits on the government's Green Vahan Sewa Portal. This will be a significant step in enhancing the ease of doing business in the alternative fuel sector, the industry body said.

The new guidelines eliminated a long-standing bureaucratic practice that required Type Approval Certificate holders to send hard copies of homologation certificates to the State Transport Commissioner’s office and subsequently follow up with numerous Regional Transport Offices (RTOs) across India.

The complex process followed previously caused delays, allowed for fake approvals, and imposed a heavy compliance burden on MSMEs and SMEs in the retrofitment industry.

Under the new system, verification of alternate fuel kits will be conducted directly via the Green Vahan Sewa Portal, eliminating the need for multiple physical submissions and significantly reducing administrative overheads. "This change is expected to enhance transparency, curb fraudulent approvals, and accelerate the registration process for manufacturers and kit suppliers," the IAC said in a release.

"By removing unnecessary layers of bureaucracy, the government has empowered Type Approval holders, mostly small and medium enterprises, to focus on innovation and service delivery rather than endless paperwork," Indian Auto LPG Coalition Director General Suyash Gupta said.

Further, the IAC urged the government to reduce the Goods and Services Tax (GST) on LPG conversion kits from 28 per cent to 5 per cent, matching the tax rate on electric vehicles. The industry body had earlier highlighted that the manufacturing, use, and scrapping of battery electric vehicles (BEVs) emit 15-50 per cent more greenhouse gases than hybrid and conventional engine cars.

–IANS

— IANS

Reader Comments

Priya S

Great initiative! But government should also focus on increasing CNG stations in smaller cities. In my hometown, we still have to travel 20km for CNG. The infrastructure needs to match these policies.

Arjun K

Converting my petrol car to CNG was the best decision financially. Fuel costs cut by half! Hope the GST reduction happens soon - 28% is too high for conversion kits.

Sarah B

As an environmentalist, I appreciate this move. However, I'm concerned about the safety standards. Hope the online verification includes proper safety checks and not just paperwork. Safety should be priority number one.

Vikram M

Baba ji ka thullu! First reduce the GST, then talk about ease of business. 28% tax on conversion kits is daylight robbery. Government wants green India but taxes green solutions heavily. 🤦‍♂️

Nikhil C

Good step for MSMEs. The retrofit industry employs thousands of technicians and small workshops. Reducing compliance burden will help them grow and create more jobs. Digital India actually working! 💪

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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