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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.