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‘Government should incentivise use of clean fuels’

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Petrol

With the government imposing a green tax on old polluting vehicles, Indian Auto LPG Coalition (IAC) is advocating the need for this deterrent to be accompanied by incentives to people shifting to cleaner alternative fuels such as auto LPG.

The Union Ministry for Road Transport and Highways recently approved a proposal to levy a ‘green tax’ on old vehicles in a bid to curtail pollution and push consumers to switch to environmental-friendly alternatives.

Notably, hybrid vehicles and vehicles running on clean alternative fuels such as LPG, CNG and ethanol will be exempt from this tax. The initiative aims to make polluters pay for environmental pollution in India’s choking cities.

While welcoming the move as a step in the right direction, Indian Auto LPG Coalition has suggested that penalising polluters should be accompanied by reward for users of clean fuels.

“India’s choking cities need to shift a large number of their private vehicles to clean alternative fuels immediately and pushing consumers to switch their existing vehicles to clean alternatives is the quickest way to achieve this. This is why a penalty for polluters must also be accompanied by reward or incentives for citizens switching to clean fuels to make it more impactful,” said Suyash Gupta, Director General, Indian Auto LPG Coalition.

Petrol and diesel vehicles including cars, two-wheelers and three wheelers can easily be converted to Auto LPG or CNG by installing conversion kits. Conversion kits that currently cost up to Rs 25,000 can be made significantly more affordable with GST cuts and subsidy support, said that the nodal body for the promotion of Auto LPG in India.

These conversion kits are taxed at a prohibitive GST rate of 28 per cent, a policy that is dichotomous to the government’s commitment to clean energy.

“Rationalising this prohibitive GST rate on conversion kits to 5 per cent has been a long-pending plea of the Auto LPG sector. Reducing this GST rate will make conversion kits more affordable for mass usage,” Gupta said.

He further said that the government must also consider subsidising conversion kits for consumers as a move towards incentivizing personal vehicle users to shift to clean gaseous fuels at a mass level. The green tax on polluting vehicles together with incentives for consumers shifting to clean fuels can have a quick and remarkable effect on India’s urban air quality, Gupta added.

Business

Zomato shares decline 9%, market cap falls below 1L cr

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Shares of online food aggregator Zomato declined 9 per cent intraday on Friday.

Analysts are linking the decline with unsupportive valuations. Over the past one-month period, Zomato shares fell nearly 18 per cent.

Listed in July 2021, Zomato shares are, however, up more than 50 per cent from its IPO issue price of Rs 76. On Friday’s closing, it was at Rs 114 per share.

“The costs have escalated due to the tax imposed on the aggregator, along with the fact that the lockdown is also not currently happening, which also appears to be a weakness,” said Ravi Singhal, Vice Chairman at GCL Securities.

With Friday’s losses, the company’s market capitalisation fell below the 1 lakh crore-mark, NSE data showed.

According to Ravi Singh, Vice President and Head of Research, Share India Securities: “The technical setup in Zomato stock is in bearish formation on intraday and daily which may drag the stock up to Rs 112-110 levels in the near term.

“The valuations of the company are also not supporting the growth. Zomato is facing tough competition from Swiggy in many ways, mainly having a thinner Metro restaurant network and density versus Swiggy. We recommend investors to maintain the sell position in the stock.”

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Business

Decline in equities continue for 4th straight sessions

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The 30-scrip Sensitive Index (Sensex) and broader 50-scrip Nifty on the National Stock Exchange (NSE) extended their losses from the previous three consecutive sessions and declined on Friday.

At 10.25 a.m., Sensex traded at 58,593 points, down 0.9 per cent from the previous close of 59,464 points. It opened at 59,039 points.

Nifty traded at 17,599 points, down 0.9 per cent from the previous close of 17,757 points. It opened at 17,613 points.

Bajaj Finserv, Tech Mahindra, Coal India, Adani Ports, Bharti Airtel were some of the top losers, NSE data showed.

Top gainers during the early trade were Hindustan Unilever, Tata Consumers, Bajaj Auto, Hero MotoCorp, and Power Grid Corporation.

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Business

Decline in equities continue for 4th straight sessions

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The 30-scrip Sensitive Index (Sensex) and broader 50-scrip Nifty on the National Stock Exchange (NSE) extended their losses from the previous three consecutive sessions and declined on Friday.

At 10.25 a.m., Sensex traded at 58,593 points, down 0.9 per cent from the previous close of 59,464 points. It opened at 59,039 points.

Nifty traded at 17,599 points, down 0.9 per cent from the previous close of 17,757 points. It opened at 17,613 points.

Bajaj Finserv, Tech Mahindra, Coal India, Adani Ports, Bharti Airtel were some of the top losers, NSE data showed.

Top gainers during the early trade were Hindustan Unilever, Tata Consumers, Bajaj Auto, Hero MotoCorp, and Power Grid Corporation.

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