The Ministry of Power (MoP) on July 03, 2026, issued a draft amendment to Corporate Average Fuel Consumption (CAFC) Norms under the Energy Conservation Act.
The following has been stated:-
•The Ministry of Power has issued a draft notification proposing amendments to the Corporate Average Fuel Consumption (CAFC) framework and invited public comments within 14 days.
•The draft introduces a credit-debit mechanism, manufacturer passbooks, and credit pooling/trading to help vehicle manufacturers meet fuel consumption targets for FY 2022-23 to FY 2026-27.
•Manufacturers may also purchase credits from the Bureau of Energy Efficiency (BEE) at ₹2,500 per g CO₂/km to offset compliance deficits.
•Credits and debits can be carried forward within the five-year compliance block, with final settlements due by 30 September 2027, after which unused credits will lapse.
•The proposal also strengthens annual reporting, compliance assessment, penalties for non-compliance, and requires manufacturers to submit state-wise vehicle sales data to the designated agency.
The detailed notification is given in the document below.
[Notification No.: F. No.10/3/2021-EC]
