Gadkari’s diesel tax gaffe underscores need to focus on outcomes, not process
Minister for Road Transport and Highways Nitin Gadkari is undoubtedly a man in a hurry. His go-getter attitude has undoubtedly transformed highway construction in India. Under his remit, the pace of road construction in India has leapfrogged from around 3 km per day to around 37 km per day.
His impatience with the normal glacial pace of decision-making in government is well known. This is why he managed to push through the direct jump from BS-IV to BS-VI emissions norms, where lesser mortals might have quailed at the costs and difficulties involved. But Gadkari’s impatience – and insistence -- compelled both automobile manufacturers and petroleum refiners to work double-time to effect the transition in an unprecedentedly short time frame.
But sometimes, his tendency to shoot first and ask questions later can have unintended consequences. After he threatened automakers, at the 63rd Annual meeting of the Society of Indian Automobile Manufacturers no less, to impose a 10% additional tax on diesel vehicles, stocks of auto manufacturers and petroleum refiners went into a tailspin and created panic in the auto industry, forcing him to walk back the statement soon after on social media platform X. Of course, the threat to increase taxes on diesel vehicles was not the only thing Gadkari said in his speech.
He had earlier urged the industry to voluntarily reduce the production of diesel vehicles. “Diesel is a hazardous fuel, and India is a huge importer as well. Industry must Suo Motu reduce diesel engine production, lest the government is forced to increase the tax on diesel vehicles," the minister said, while urging auto makers to look at greener fuels like ethanol, as well as hydrogen fuel cell vehicles.
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