Policy Watch

Clean-fuel industry pushes Delhi regulator for flexibility

By Georgia Turner October 15, 2026
Close-up of a hand refueling a vehicle. E20 petrol pump nozzle in use.
Close-up of a hand refueling a vehicle. E20 petrol pump nozzle in use. Photo: Fahad Puthawala/Pexels

Delhi-NCR’s clean-mobility debate has shifted from a simple EV-versus-petrol comparison to a broader question of which technology fits each vehicle class, how fast it can roll out, and what will happen to the existing CNG and bio-fuel network.

Industry bodies push back on a BEV-only outlook

Seven clean-fuel organisations told the CAQM that an April consultation appeared to favour a battery-electric-vehicle-only pathway. Their letter, dated April 22, was signed by the Indian Sugar and Bio-energy Manufacturers Association, the National Federation of Cooperative Sugar Factories and the Indian Federation of Green Energy. They argued that the draft ignored the contributions of alternative fuels that have already been deployed across the region.

A follow-up representation on April 29 added four more groups – the Association of CGD Entities, the Grains Ethanol Manufacturers Association, the Indian Biogas Association and the All India Distillers’ Association. All said their data had not been fully considered, and they asked the regulator to incorporate the missing information before finalising any policy.

The signatories maintain that Delhi’s air-quality woes cannot be solved by a single vehicle technology. They point out that older, high-polluting trucks still dominate the streets and that any policy must first gauge the real impact of current clean-fuel systems before phasing them out.

ACE’s September challenge raises the stakes

The Association of CGD Entities (ACE) sent a September 21 letter questioning CAQM’s Direction No. 102, which restricts new CNG light-goods vehicles. The group says the emissions figures used in the directive need an independent audit.

Specifically, ACE disputes a reported 57-fold gap in PM2.5 emissions between CNG light-goods vehicles and other CNG categories. It claims on-road measurements do not support such a disparity and asks the regulator to re-examine the underlying data.

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Beyond the numbers, they want any switch from a new fuel vehicle to an electric model to be weighed against the availability of charging stations, the electricity mix, total-life emissions, cost and the actual effect on local air quality.

The latest study from the TERI Center, released on September 30, compares petrol, diesel, the gas, electricity and LNG across six vehicle segments, from two-wheelers to heavy-duty trucks. Its core finding is that no single fuel outperforms across all categories, urging a segmented transition based on use-case and operating conditions.

Aditya Singh Ratnu, founder and CEO of Zevo India, said the study “does not underestimate the importance of EVs,” highlighting their low ownership costs and strong long-term potential for two-wheelers and three-wheelers.

Industry leaders also stress the existing CNG network’s maturity in Delhi-NCR. Kumar Shanker, managing director of IGL, said the fuel offers a blend of lifecycle emissions, affordability and ready-made infrastructure, making it a practical component of a multi-fuel strategy.

Subhash Kumar, director general of ACE and former ONGC chief, added that increasing the blend of compressed biogas (CBG) into the fuel would further clean the natural-gas pathway while supporting rural economies.

Gaurav Kedia, chairman of the Indian Biogas Association, said, “CBG addresses several priorities together – it is carbon negative, offers greater energy security and a stronger rural economy.”

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