New Delhi: Auto component manufacturers have not reported any major LPG shortages so far, a senior government official said on Monday, noting that authorities are closely monitoring supplies amid evolving developments in West Asia.
Addressing an inter-ministerial briefing, Additional Secretary in the Ministry of Heavy Industries, Hanif Qureshi, said the government is in regular contact with the Auto Component Manufacturers Association (ACMA) and other industry groups to ensure adequate availability of gas and avoid disruptions in production.
He added that the ministry is engaging with the automobile sector to address supply chain concerns and has advised companies to shift to cleaner alternatives such as electric furnaces and piped natural gas (PNG) wherever feasible.
Qureshi said LPG remains an important fuel for component manufacturing, but no serious shortages have been flagged so far. He also highlighted strong industry performance, noting that vehicle production rose by 15–16 per cent in March.
On policy support, he said the government continues to promote electric mobility through schemes such as the PM E-DRIVE initiative and the production-linked incentive (PLI) scheme for automobiles, alongside efforts to boost domestic manufacturing under the AatmaNirbhar Bharat initiative.
The subsidy period for electric three-wheeler e-rickshaws has been extended to March 2028, while incentives for electric two-wheelers will now continue till July 31, 2026. The phased manufacturing programme timelines for trucks and buses have also been relaxed by six months to September 1, 2026.
Qureshi added that the government is pushing biofuels, with 20 per cent ethanol blending already achieved and increasing adoption of flex-fuel vehicles expected to reduce dependence on crude imports.
Efforts are also underway to strengthen supply chains, including a Rs 7,280-crore scheme to develop domestic rare earth magnet manufacturing capacity.