27th December, 2002
Ministry of Petroleum & Natural Gas  


COMPREHENSIVE AUTO FUEL POLICY – THE ONLY WAY TO FUTURE ROAD MAP OF FUEL QUALITY: RAM NAIK

PARLIAMENTARY CONSULTATIVE COMMITTEE DISCUSSES

"AUTO FUEL POLICY"


YEAR END REVIEW-2002

The Parliamentary Consultative Committee attached to the Ministry of Petroleum & Natural Gas discussed the "Auto Fuel Policy" in its meeting here late evening yesterday. While, initiating discussions Shri Ram Naik informed the members that the need for a comprehensive Auto Fuel Policy has been keenly felt because of the increasing environmental concerns. The Minister said the policy inter alia addresses questions relating to suitable auto fuels, their availability, security of supplies, vehicle technology, emission reduction in a cost effective manner, fiscal measures for ensuring minimisation of social cost of meeting environmental quality and institutional mechanism for certification of vehicles and fuels, as also the monitoring and enforcement measures.

Inviting suggestions from the Members for formulation of National Auto Fuel Policy, Shri Naik recalled that the Government constituted a Committee of Experts of national repute, headed by Dr. R.A. Mashelkar, DG, CSIR, to recommend an Auto Fuel Policy for the country. The Expert Committee submitted its interim report on 1st January, 2002 and its major recommendations were accepted by the Government. Thereafter, the Committee submitted its final report on 25th September, 2002 on which the Government has invited the views of general public and other stakeholders. The full report of the Committee has been put on the website petroleum.nic.in for inviting the comments from general public. The Government has also sought comments from all the State Govenments and the concerned Central Ministries through individual letters to the Chief Ministers and Union Ministers.

The Minister outlined the recent developments on the oil sector. He informed that the guidelines for development of Petroleum Products Pipelines in the post APM era were notified on 20.11.2002. In pursuance of the decision mandating 5 per cent blending of ethanol in petrol w.e.f. 1st January, 2003 as many as six new ethanol-petrol blending projects have commenced. These are at Najibabad, Gonda and Kanpur in U.P, Rajamundry in A.P. and Pathankot & Bhatinda in Punjab, making a total of nine projects in operation in the country. Award of 23 exploration blocks under NELP-III were approved and 23 km long CNG pipeline connecting GT Karnal Road and Dhaula Kuan was commissioned paving way for smooth dispensing of CNG in Delhi. Shri Naik added that Retail outlets were allotted under the discretionary powers of the Government to the next kin of 9 Government employees who sacrificed their lives on the 13th December attack on the Indian Parliament.

Later responding to Members’ queries, Shri Santosh Gangwar, Minister of State for Petroleum & Natural Gas urged the members to send their valuable suggestions on the recommendations of the Expert Committee for finalising the vibrant Auto Fuel Policy. He also assured them that different cleaner fuels such as 0.05% sulphur diesel and petrol, LPG, ethanol blended fuels, CNG, etc., would be introduced in more cities and towns. This will, however, be dependent upon the factors like development of natural gas pipeline and availability of natural gas in the case of CNG. He also said that the Government is committed to curb the menace of adulteration and said that the Government is constantly keeping a watch and following up with the stringent action against the errant dealers. In addition to setting up of a Specialised Body, the Anti-adulteration Cell, the number of Mobile Labs have been increased from 17 to 50 for surprise checks at the Retail Outlets.

While complementing the Petroleum Ministry and the Oil Sector PSUs for excellent performance through out the year 2002, the members desired that the sector should continue and in fact step on to a higher level of performance in future. The members called for providing the option of use of fuels to the consumers by making available cleaner fuels in more cities and towns. They pointed out that Anti-adulteration drive should have greater focus on mofussil and remote area locations. It was pointed out that the Auto Fuel Policy should have a long term view taking in to consideration various R & D efforts going on in the world to find new and more efficient fuels and vehicular technology. They also called for protection of the interest of the employees while undertaking disinvestment of oil PSUs.

Substantial improvements have been done in petrol and diesel quality in India since 1996. For this purpose, refineries have implemented major programmes of quality upgradation. Investment of about Rs. 10,000 crore have been made for petrol and diesel quality improvements to meet the Bureau of Indian Standards Specifications made effective 1.4.2000. India has totally phased out lead from petrol from February 2000. While the developing countries took 10 to 20 years to phase out lead, in India the same was achieved over a period of 6 years. China and many other countries in the Asia Pacific region, South America, Africa and elsewhere have not yet phased out lead from petrol. In the four metropolitan cities, diesel with 0.05% max. sulphur content is being supplied presently. It is comparable with USA, Canada, Japan, Singapore, etc. Another important parameter of diesel quality is high cetane number, which signifies better ignition performance of diesel engine and lower emissions. The cetane number has been increased from 45 to 48 from April 2000 which is higher as compared to most countries in the world, where it varies between 40 and 51.

Petroleum Secretary Shri B.K. Chaturvedi, and Additional Secretary (P&NG) Shri M.S. Srinivasan, also attended the meeting. In addition senior officers of the Ministry, CMDs and other senior officers of Oil PSUs attended the meeting.

The following Members of the Committee attended the meeting: S/Shri Lal Bihari Tiwari, Jaswant Singh Bishnoi, Dr. Laxminarayan Pandey, Manibhai R. Chaudhari, Prof. Rasa Singh Rawat, Shrichand Kriplani, Ram Singh Kaswan, N.H. Diwathe, Kishan Singh Sangwan, Nagmani, Jai Prakash, Prasanna Acharaya, Lakshman Seth, Ram Sajiwan, Ram Jeevan Singh, M.H. Gavit, Shibu Soren, Dr. (Smt.) Sudha Yadav, Shyam Bihari Mishra and Harpal Singh Sathi (all from Lok Sabha); Prof. Ram Deo Bhandari, N.R. Dasari, Rajubhai A. Parmar, Prof. M.M. Agarwal and Ram Nath Kobind (all from Rajya Sabha).