Clean fuel deadline

Auto, oil sectors worried as clean fuel deadline looms large

The timing could not have been more paradoxical. As India gears up for the
Copenhagen climate summit beginning Monday, its automobile and oil sectors
are getting ready to face an explosive situation on the clean fuel deadline
that comes into effect from April 1, 2010. This date will see 14 cities
graduate to Bharat Stage IV emission norms (from the present BS III) while
the rest of the country transits to BS III from BS II levels. Simply put, it
means that cars, utility-vehicles and trucks in the top rung cities will,
from April 1, be supplied cleaner BS IV petrol and diesel while other
vehicles will get a leg up with BS III fuel.

The only hitch is that there is practically no hope of BS III auto fuel
being available across the country because the time is just too short for
oil companies to have a supply network in place. This calls for more rail
wagons, space at ports, upgrading refineries etc. The deadline, sources say,
should ideally be put off to October 1, 2010 except that the Centre will
need to seek approval of the Supreme Court.

Auto industry view :: From the automobile industry's point of view, this
situation would be nothing short of a nightmare. "It would be impossible for
us to operate in an environment where BS IV and BS II fuels were to
co-exist," officials said.In the present scenario, BS III-compliant vehicles
can still be supplied BS II fuel without any fear of damage to equipment.
However, the same cannot be said for a BS IV car driving into BS II
territory and using fuel there. "The equipment will just not be able to
handle inferior fuel which will have higher sulphur content," they added.

What is even scarier are the prospects of all three fuels (BS II, III and
IV) being retailed nationwide. There is no way the auto sector can
manufacture different vehicles as this will only push up costs. "It would
also be a futile exercise because BS II vehicles will eventually be shown
the door," an executive said.The automobile industry believes it makes
perfect sense to have the deadline deferred by at least three months so that
there is greater sanity at the ground-level situation. This would, of
course, need greater urgency on the part of the Ministries of Road Transport
and of Petroleum and Natural Gas to get the Supreme Court's nod. "A delay on
this matter could be costly," sources said.

...by.........Murali Gopalan..........Mumbai, Dec. 6...from the pages of THE
HINDU newspaper.