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NITI Aayog has proposed fiscal and non-fiscal incentives along with VAT reduction and accelerated depreciation to encourage the use of LNG-fueled vehicles. They have also suggested setting up a demand aggregator for buying LNG trucks. The aim is to lower carbon dioxide emissions and increase the share of natural gas in the energy mix. Furthermore, they recommend including LNG vehicles in the production linked incentive scheme and providing non-fiscal incentives such as priority lane access and extended vehicle life.

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