With a price tag of about Rs 1 lakh, the Nano will cost about half as much as the cheapest car currently on the market. But, some environmentalists are dreading the prospect of hundreds of thousands of low-cost cars hitting polluted and over-crowded roads around the world in the next few years.

Saving energy: The regional aircraft Modem Ark (MA)600 in Xi'an, China, on Sunday. XI'AN: The first China-made regional aircraft Modem Ark (MA)600 was completed on Sunday, marking a milestone in the nation's drive to be one of the world's leading providers of turboprop regional aircraft. The research and development of the 70-seat MA700 was also under way, head of the preparation group for the China Aviation Industry Group Corporation Lin Zuomin announced at the Xi'an Aircraft Industry(Group) Company Ltd.

Senator John McCain hopes to solve the country's energy crisis with cold hard cash. The Republican presidential nominee-inwaiting thinks the government should offer a $300 million prize to the person who can develop an automobile battery that leapfrogs existing technology. The prize would equate to $1 for every man, woman and child in the country. In a speech at Fresno State University in California, McCain will also propose stiffer fines for automakers who skirt existing fuel-efficiency standards. AP

By S Lalitha, DH News Service, Bangalore: To reduce pollution emissions, the Karnataka State Road Transport Corporation (KSRTC) plans to incorporate sophisticated filters and use diesel-ethanol in the 600 buses of the Mysore urban division under the Global Environment Facility (GEF) project, an international initiative to preserve the environment. By early September World Bank will sanction Rs 14.3 crore for implementation of the project.

The government should get into discussions with the world's leading car manufacturers, almost all of whom have now set up (or are setting up) shop in India, to encourage the local production of cars that run on dual fuels or even entirely on fuel cells. The benefits will be seen not just through reduced consumption of hydrocarbons but also through a reduction in automobile emissions. While Honda has just introduced its hybrid Civic in India, more such cars are being produced overseas (like Toyota's Prius).

India got its first hybrid car on Wednesday with Honda rolling out a petrol-electric version of its Civic sedan. The car will be more eco-friendly and fuel efficient (for its class) than any other in the market but will remain a niche product. The reason? The Civic hybrid has come with a prohibitive price tag of Rs 21.5 lakh (ex-showroom, Delhi), twice the price of the petrol Civic, thanks to accumulated duties, including customs, of 104%. This virtually makes the country's search for green and fuel-efficient options a non-starter.

Japanese car major Honda on Wednesday launched its first hybrid car in India, Civic Hybrid, priced at Rs 21.5 lakh. Masahiro Takedagawa, president and CEO of Honda Siel Cars India told reporters, the high price tag was partially due to the 104 per cent customs duty on the vehicle. The company is importing Civic Hybrid from Japan as a completely built unit. Takedagawa said they have approached the government through SIAM to clip the import duty.

India has introduced a fuel-guzzler tax, making heavyweights of the road heavier on your pocket. Big cars will cost Rs 15,000-20,000 more with the Centre slapping an additional excise duty in what officials claimed was an attempt to discourage fuel consumption and emission. The levy, which will help the government mop up extra revenue, drew howls of protest from the automotive industry. However, the green lobby, which had been advocating a discriminatory tax on big vehicles, welcomed the step.

India may go for another round of hike in energy prices as global crude prices continue the upward swing, says credit rating agency Moody's. "As global prices continue to soar, the government will likely announce further increases in energy prices and cuts in subsidies,' said a report by Moody's Economy.com, an associate of Moody's. After much dilly-dallying, the government had earlier this month hiked price of petrol by Rs 5 a litre, Rs 3 for diesel and Rs 50 for a gas cylinder to help oil marketing firms partly meet their under-recoveries because of surging global crude prices.

Skyrocketing Prices Have Driven Vehicle Owners To Look At Alternatives Kumar Manish | TNN Ahmedabad: Car owners, who have felt the pinch of the fuel price hike the most, have started mulling options to switch over to cheaper fuel like compressed natural gas(CNG) or auto liquefied petroleum gas (LPG). With the price of petrol going up by Rs 5 and diesel by Rs 3, authorized CNG dealers in the city are flooded with inquires by four-wheeler owners regarding the pros and cons of CNG kits.