GM calls for a more FDI friendly policy, consistency

Pitching for a more FDI-friendly policy, General Motors India today pointed out that the government needed to be consistent in framing guidelines and not resort to short term measures like 'diesel tax'.

"What we expect from the upcoming Budget is that there should not be diesel tax. It is not the right time for it," General Motors India president and managing director Lowell Paddock said.

Echoing the industry body SIAM's (Society of Indian Automobile Manufacturers) view that only 1 per cent of diesel consumed in India was used by personal passenger vehicles, he said the ideal way to address the whole issue was to deregulate the fuel and let the price be determined by the  market determine.

There have been not a few calls from different quarters for imposing tax on diesel cars as subsidised fuel had been benefiting the affluent.

Paddock, however, said such a move was not warranted considering the benefits of diesel technology in terms of environment friendliness and overall benefit.

He stressed "consistency in the policy" was the need of the hour to order to attract more investments in India.