Auto fuel policy to be unveiled soon

Our Infrastructure Bureau

New Delhi, Jan 1: The government will come up with an auto fuel policy soon. According to petroleum minister Ram Naik, the Cabinet will consider the recommendations of the expert group by the month-end. The committee, headed by CSIR director-general RA Mashelkar, submitted its interim report to the minister on Tuesday.

The policy will require granting certain fiscal concessions to petroleum refineries and automobile manufacturers.

The committee has recommended that the Bharat stage-II norms, which are in place in Delhi, Kolkata, Chennai and Mumbai, be introduced in Bangalore, Hyderbad and Ahmedabad before the 2003-end. The norms should be extended to the entire country from April 1, 2005.

Addressing a press conference after presenting the report to the minister, Dr Mashelkar said a massive investment of about Rs 60,000 crore would be required for improving the facilities at refineries and the auto industry.

This includes Rs 17,000-crore investment for upgrading refineries to produce Euro-II equivalent auto fuels and an additional amount of around Rs 18,000 crore would be required to match Euro-III.

Sulphur content in Euro-III equivalent specifications of diesel and petrol are below 350 ppm and 150 ppm, respectively. Aromatics content in Euro-III equivalent specification of petrol is 42 per cent.

According to committee, the Euro-III emission norms for all categories of vehicles (excluding two and three wheelers) should be extended to rest of the country from 2010. The necessity and feasibility of extending Euro-III equivalent emission norms prior to 2010 should be reviewed in the light of experience gained after introduction of Bharat-II norms in the entire country.

Stating that the use of compressed natural gas (CNG) and liquefied petroleum gas (LPG) as auto fuel should be encouraged, he said any combination of fuel and vehicle technology, which meets the prescribed emission norms, should be acceptable.

According to him, the government is likely to go to the Cabinet with these set of interim recommendations on auto fuel policy by the end of this month.

The final report, which will also include auto fuel issues relating to dismantling of administered price mechanism, will be submitted by March-end.