New Delhi: Auto component manufacturers have not flagged any serious LPG supply shortages so far, even as the government steps up coordination with industry amid evolving tensions in West Asia, a senior official said on Monday. Speaking at an inter-ministerial briefing, Additional Secretary in the Ministry of Heavy Industries Hanif Qureshi said the government is closely engaging with the sector to ensure continuity in supplies and prevent disruptions.
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"LPG is used in the component manufacturing industry, and the government is in touch with ACMA (Auto Component Manufacturers Association) and the industry associations. We are taking all measures to ensure that adequate supply is there, along with the Ministry of Petroleum, and no serious shortages have been reported."
He added that the ministry is maintaining constant communication with automobile manufacturers to address emerging supply chain issues.
Alongside supply monitoring, the government has advised companies to reduce dependence on LPG where possible by shifting to cleaner alternatives such as electric furnaces and piped natural gas (PNG).
The push comes even as the sector recorded strong output growth.
"In fact, if we look at the production base of March, then about 15 to 16 percent increase in the production of vehicles has taken place in the month of March," said Qureshi.
Qureshi said policy support for electric mobility and domestic manufacturing remains in place through multiple schemes. "So both these schemes continue, and along with the Scheme to promote the Manufacturing of Rare Earth Magnets, that will also improve the supply chain, and it will be a push towards AatmaNirbhar Bharat," he observed, referring to the Prime Minister’s E-DRIVE scheme for consumers and the PLI auto scheme for manufacturers.
The Ministry of Heavy Industries is also working on broader measures to boost EV adoption, strengthen domestic production and improve supply chain resilience in the wake of the West Asia crisis.
Highlighting alternative fuel efforts, Qureshi said ethanol blending has already reached 20 percent and will be complemented by the rollout of flex-fuel vehicles.
"There is also a programme of flex fuels, and the industry has already come up with models which are compliant with flex fuel. So the Flex Fuel means that from E-20 to E-85 the engines can take that blend without any degradation in performance. So we are seeing development of four-wheelers as well as two-wheelers, which are capable of using flex fuels. So we are confident that the use of flex fuels will also grow, which will also ease the pressure on the import of crude," he added.
The government has also revised timelines under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. Subsidies for three-wheeler e-rickshaws, earlier available until March 2026, have now been extended by two years to March 2028. Incentives for electric two-wheelers have been extended by three months until 31 July 2026.
Qureshi said the phased manufacturing programme (PMP), which determines subsidy levels and promotes localisation, has also been adjusted.
"Considering the supply chain issues due to the West Asia crisis, the PMP guidelines for trucks and buses have been relaxed by six months now; the new date of September 1, 2026, has been given," he added.
Efforts to strengthen supply chain resilience are also focused on critical components such as rare earth magnets. "For this, the issue of rare earth magnets has been highlighted, as you would know, that with a total budgetary outlay of Rs 7,280 crore, the rare earth permanent magnet manufacturing scheme was notified by the ministry. This targets the establishment of 6,000 MTPA of domestic integrated manufacturing capacity."
Qureshi said progress is underway, with industry participation picking up.
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"Recently, on April 7, a pre-bid conference was held. The tenders have been floated. RFP (Request for Proposal) has been floated on the CPP portal, and more than 25 prospective bidders attended the meeting. For supply chain issues, the ministry is in constant touch with the automobile industry, and is making appropriate efforts to address the same," he said.
