Auto, taxi operators in Karnataka seek subsidy to shift from LPG to CNG, EV

Bengaluru: Autorickshaw and taxi operators across Karnataka have urged both the state and Union govts to provide immediate financial assistance and policy support in the wake of a prolonged LPG shortage that has severely affected the transport sector for more than 45 days. The operators have also sought subsidies for converting existing LPG-run vehicles to CNG and EV costing a few thousands to lakhs.

In a representation submitted to the govt, the Federation of Karnataka State Private Transport Associations stated the acute scarcity of LPG, allegedly triggered by disruptions in supply chains amid the prevailing war situation in West Asia, has forced thousands of LPG-run autos and taxis off the roads across Karnataka.





The federation stated although the Centre had initially indicated that the fuel disruption would be temporary, the shortage continues unabated, leaving drivers struggling to sustain their livelihoods. It argued that conversion of LPG-operated vehicles to CNG and electric alternatives now appears to be the most practical and sustainable solution.

Citing a recent statement by union minister Pralhad Joshi supporting the conversion of LPG vehicles to CNG, the federation urged the govts to introduce subsidies and financial support schemes for vehicle conversion. According to federation president, S Nataraja Sharma, converting an auto or taxi from LPG to CNG costs around Rs 55,000, while conversion to electric vehicles costs nearly Rs 1.3 lakh.

The federation also sought soft loans at low interest rates, expansion of CNG infrastructure, uninterrupted CNG supply, and emergency welfare measures for drivers and owners belonging to the unorganised transport sector. It further pointed out during the Covid-19 pandemic, several relief schemes were extended mainly to MSME-registered entities, while many small and individual transport operators in the unorganised sector were excluded from financial assistance.