To clarify his remarks on diesel vehicle taxation, Union Minister Nitin Gadkari said on Sept 14 that he wanted to convey to automobile manufacturers that he wanted them to take steps to reduce pollution, but that there is no proposal to tax such vehicles. The road, transport, and highway minister's remarks earlier this week about the need to levy a 10% tax on diesel-powered vehicles to help reduce emissions sparked widespread debate.

"I am not opposed to diesel fuel, and we will not impose a tax on diesel vehicles," Gadkari told CNBC-TV18.

The road transport and highways minister stated that diesel is extremely dangerous in terms of pollution and is causing serious health issues in the country.

Gadkari stressed that he is not opposed to any industry and noted that the government is already providing incentives for electric vehicles.

"So my suggestion to the industry is that the best way to (reduce pollution) is to concentrate on alternative fuel," he continued.

Gadkari stated on September 12 at the annual convention of automobile manufacturers body SIAM that rising pollution levels are a serious health concern and that there is a case for increasing taxes to discourage the sale of diesel vehicles.

"I am requesting that the Finance Minister impose an additional 10% GST on diesel engines and vehicles." "This is the only way to eliminate diesel vehicles," he had stated.