11th December, 2003
Ministry of Petroleum & Natural Gas  


SMT. SUMITRA MAHAJAN PLACES NATIONAL AUTO FUEL POLICY IN THE LOK SABHA


Smt Sumitra Mahajan, Minister of State for Petroleum & Natural Gas, laid the National Auto Fuel Policy on the Table of the Lok Sabha today. The policy provides a clear cut road map for changes in vehicular technology and corresponding fuel quality for the whole country. Measures are also proposed to reduce emissions from in-use vehicles. It is expected that the implementation of the policy would lead to better ambient air quality which will reflect through improvement in public health and better environment.

The salient features of the National Auto Fuel Policy include compliance of Bharat Stage-II norms by all new vehicles (other than 2/3 wheelers) from 1.4.2005 in the whole country and Euro-III equivalent norms in the whole country from 1.4.2010. In 11 major cities which include Delhi/NCR, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur and Agra the new vehicles would meet Euro-III equivalent norms from 1.4.2005 and Euro-IV norms from 1.4.2010. New 2/3 wheelers would be required to meet Bharat Stage-II norms from 1.4.2005 and Bharat Stage-III norms preferably from 1.4.2008 but not later than 1.4.2010. In respect of in-use vehicles, the policy suggests new improved Pollution Under Control (PUC) checking system, inspection and maintenance system, checking system for catalytic converter and conversion kits for CNG/LPG vehicles.

Another significant feature of the policy include a road map for compliance of emission norms by buses/trucks plying on Inter-State routes passing through Delhi and 10 other major cities mentioned above which have high level of environmental pollution. Inter-State buses/trucks would not be allowed to originate or terminate in Delhi from 1.4.2007 unless they meet India 2000 emission norms and the cut-off point for Bharat Stage-II norms will be 1.4.2011. Emission norms for Inter-State buses originating or culminating in 10 other major cities will have to meet a minimum of 1996 norms w.e.f. 1.4.2006, if registered before 1.4.2000 and India 2000 norms, if registered after 1.4.2000. For Inter-State buses registered after 1.4.2005 in these cities will have to meet at least Bharat Stage-II norms w.e.f. 1.4.2011.

It is estimated that the existing domestic oil refineries, in addition to the investment of Rs. 10,000 crore already made to achieve Euro-I/Bharat Stage-II auto fuel specifications, would need to incur an additional investment of around Rs. 18,000 crore by the year 2005. Further investment of around Rs. 12,000 crore will need to be made during the period 2005-2010. The investment requirement of the automobile industry is estimated at around Rs. 25,000 crore over this period.

The Policy suggests, taking into account security of supplies and existing logistics perspectives, that liquid fuels should remain as main auto fuels throughout the country. The policy recommends encouraging use of CNG/LPG in cities affected by higher pollution levels so as to enable vehicle owners to have the choice of the fuel and technology combination.

To accelerate development of other alternative clean technologies like battery-powered vehicles, hydrogen and fuel cell vehicles, etc., Auto Fuel Policy suggests that a comprehensive support programme should be drawn up. Technologies for producing ethanol/bio fuels and vehicles to use these fuels would be encouraged through R & D and other fiscal and financial measures. The policy also recommends scientific studies for collection of sufficient air quality data for the whole country and to apportion the health disorders attributable to air pollution/vehicular pollution.

The policy has been formulated taking a holistic view of the diverse aspects of auto emissions, auto technologies and auto fuel quality on the one hand and the social costs and security of fuel supply on the other. A Committee of Experts of national repute headed by Dr. R.A. Mashelkar, Director General, Council of Scientific & Industrial Research (CSIR), was set up to recommend an appropriate Auto Fuel Policy for the country.