The Prime Minister’s Office (PMO) met on Wednesday to review proposed carbon emission norms for passenger vehicles to come into effect from 2027, although no final decision was reached.
A senior government official who was part of the high-level meeting said “no final decision has been taken yet” on the contentious issue of the draft Corporate Average Fuel Efficiency (CAFE)-3 standards that divide small and large carmakers.
Representatives of the Ministry of Energy, the Office for Energy Efficiency and the Ministry of Heavy Industry were part of the meeting.
Speaking to reporters on the sidelines of a FICCI event, Heavy Industries Minister HD Kumaraswamy said of the proposal: “We have already had a meeting with the stakeholders and the power ministry. The power ministry has sent the proposal to the PMO as per my information.”
Regarding the content of the proposal, the minister only said: “We are going to use whatever is the best way to promote electric mobility.
The Bureau of Energy Efficiency recently circulated a revised draft of the CAFE III standards to the industry after an earlier version released last September caused a split among automakers with larger vehicle manufacturers opposed to some relaxations extended to small car makers.
The latest proposal, shared with carmakers but not yet published, scrapped the 3.0g CO2/km exemption for cars weighing up to 909kg and with an engine capacity of no more than 1200cc. This made the emission slope more even. Against the original value of 0.002 for all five years, the new proposal is 0.00153 in year 1, followed by an annual reduction to reach 0.00128 in year five. This means that the permissible emissions for heavier vehicles are lower than before, while those for small cars will be eased.
Speaking at FICCI’s 3rd National Conference on Electric Vehicles, Minister Kumaraswamy said: “Electric mobility today is not just a climate initiative; it is an industrial strategy, a manufacturing opportunity, a supply chain recalibration and a technological leap.”
Citing the progress of the ₹10,900 crore E-DRIVE programme, PM Kumaraswamy said that over 28 million electric vehicles, including over 20 million electric two-wheelers and nearly 3 million electric three-wheelers, have been sold under the program since February 2026. He added that electric tricycles have already reached their goal ahead of schedule, reaching almost 32% penetration. More than 14,000 electric buses have also been approved in major cities under an allocation of ₹4,391 crore.
Published – 25 Feb 2026 20:31 IST
