Monsoon Session: Lok Sabha to Take Up Banking, Tax Bills; AAP MP Moves Notice on E20 Petrol

New Delhi: The Monsoon Session of Parliament continued on Wednesday with the Lok Sabha scheduled to discuss the Bankers' Books Evidence Bill and the Taxation Amendment Bill. Meanwhile, in the Rajya Sabha, Aam Aadmi Party (AAP) MP Sanjay Singh moved a notice under Rule 267 seeking a debate on the alleged public hardship and consumer rights violations arising from the mandatory rollout of E20 petrol.

In his notice, Singh criticised the Centre's decision to advance the target for blending 20 per cent ethanol in petrol from 2030 to 2025, a move that has effectively made E20 petrol the default fuel at a large number of retail outlets across the country. He argued that this has forced millions of citizens to use a fuel for which their vehicles were neither designed nor certified, without providing any meaningful alternative or seeking informed consent.

Rule 267 allows members to suspend the scheduled business of the House to discuss a specific issue. The notice is expected to be considered by the Rajya Sabha Chairperson, who decides whether to accept it.

The issue of ethanol blending has gained prominence as the government pushes for cleaner fuel alternatives to reduce the country's dependence on crude oil imports and cut vehicular emissions. Ethanol, a biofuel produced from sugarcane and other biomass, is blended with petrol to reduce fossil fuel consumption. The government had originally set the target of achieving 20 per cent ethanol blending by 2030, but advanced it to 2025 amid surplus ethanol production and a push for energy self-reliance.

However, concerns have been raised by automakers and consumers about the compatibility of older vehicles with E20 fuel. While new vehicles manufactured in recent years are designed to tolerate higher ethanol blends, a significant portion of the existing vehicle fleet may not be fully compatible. Ethanol is corrosive to certain rubber and plastic components, and using E20 in incompatible engines could potentially lead to starting trouble, fuel system damage, and higher maintenance costs.

The AAP MP's notice reads, "The government has advanced its ethanol-blending target from 2030 to 2025 and has effectively made E20 petrol the default fuel available at a large number of retail outlets (petrol pumps) nationwide. Consequently, millions of citizens are being compelled to use a fuel for which their vehicles were neither designed nor certified, all without any meaningful alternative or informed consent."

Consumer rights groups have also raised similar issues in the past, pointing out that the mandatory implementation of E20 petrol without adequate awareness and alternative options could place an undue burden on vehicle owners, especially those from lower-income groups who may not afford repairs or replacement of fuel system parts.

The government, on its part, has defended the policy, stating that the automotive industry has been duly consulted and that measures are being taken to ensure a smooth transition. Public sector oil marketing companies have been directed to ensure the availability of both E20 and regular petrol at retail outlets during the transition phase, giving consumers a choice. However, Singh's notice argues that in practice, the choice is limited and consumers are not being adequately informed about the potential risks.

The development came on a day when the Lok Sabha was slated to take up two financial items of business. The Bankers' Books Evidence Bill is likely to amend an act that provides legal evidentiary value to entries in bankers' books, while the Taxation Amendment Bill may introduce changes to direct or indirect tax laws. The specifics of these bills were not immediately available, but they are part of the government's legislative agenda for the ongoing session.

Parliament's Monsoon Session, which began earlier this month, is expected to continue for several more days. Both Houses have seen disruptions from various parties over a range of issues, including price rise, unemployment, and recent incidents in the country. The acceptance of the Rule 267 notice and the subsequent discussion on E20 petrol will be awaited by stakeholders, including the automotive industry and consumer rights advocates.

This report will be updated with further details as the proceedings develop.