PMO Meets on CAFE III Norms (Corporate Average Fuel Efficiency)

Context: The Prime Minister's Office (PMO) held a high-level meeting to review the CAFE III (Corporate Average Fuel Efficiency) norms, which are set to be implemented from April 1, 2027, until 2031-2032.

What are CAFE Norms?: These are government regulations setting fuel efficiency standards for vehicle manufacturers. Their primary goal is to reduce fuel consumption and carbon emissions from vehicles, aligning with India's climate commitments.

Implementation: The norms were first notified in 2017 under the Energy Conservation Act 2001.

Major Issue: A divide exists between manufacturers of small cars and heavy vehicles. Stricter norms have been applied to heavy vehicle manufacturers, while those producing smaller cars have received some relaxations, leading to opposition from the former.

Connection to PME Drive Scheme: The CAFE norms are also linked to the PME Drive Scheme, a budget of ₹10,900 crore aimed at promoting electric vehicles in India to reduce air pollution from the transportation sector.

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