India's Cng Fiasco Could Be Avoided With Smarter, Fuel-Neutral Environmental Cleanup Policy

Diesel Fuel News, Oct 15, 2001 by R K Pachauri

(Editor's note: TERI, one of India's most prestigious energy/environmental organizations, reveals profound consequences of government trying to dictate single-fuel solutions to environmental problems, especially in areas of the world where poverty and use of limited "green" funds is even more critical. "At the moment, unfortunately, the Supreme Court of India has laid down CNG [compressed natural gas] as the only option for buses in Delhi," Pachauri told Diesel Fuel News. "However we are trying to mount a program for testing and evaluation of different fuels including ULSD [ultra-low-sulfur diesel] with particulate traps, so that we can convince the authorities that this would be an appropriate option.")

This column, which first appeared in Times of India 1 September 2001, is reprinted here by special permission):

The government of India now appears to be seized of the recent problems caused by the CNG crisis [including massive, six-hour waits for refueling, deadly tank explosions and fires] and has set up yet another committee to recommend a new auto fuel policy.

However, much hardship has already been caused to the ordinary citizen by the CNG experiment. It was supposed to be the fuel of the future for India and the Delhi experience should prove cautionary for other states.

A prominent Delhi school recently sent out letters to parents requesting them to consider forming car pools. The same letter also mentions that the school would have perforce to resort to two increases in the bus fee this year, the first on account of increase in the price of diesel fuel, and the second which is to take effect from October 2001 when CNG buses are introduced.

Unfortunately, this communication is symptomatic of a much larger reality, which those who U recommended the switch-over to CNG for public transport in Delhi, did not bother to consider. CNG is an economic extravagance. There are determined attempts to see that sales tax is not levied on CNG, even though in Delhi it is heavily subsidized, costing only Rs 12.21 per kg as opposed to Rs 18.35 in Mumbai. (Note: U.S. $1 = 48 Rupees).

By the time enhanced facilities and infrastructure are installed in Delhi, the price of CNG will go steeply upwards. A simple assessment of these costs indicates that Indraprastha Gas Limited (IGL) has already invested around Rs 150 crore (U.S.$32 million) for setting up CNG-related infrastructure in the city, and would now have to invest another Rs 350 crore ($74 million) to provide efficient supply for the huge fleet of CNG vehicles.

If conversion to CNG takes place as projected, then by March 31, 2002, we would have a total of over 97,000 vehicles running on this fuel. On the basis of a conservative estimate, just the interest and depreciation on the Rs 500 crore ($106 million) infrastructure to be established would account for an increase of over Rs 5.30 per kg for CNG, 43 per cent of the current price.

This does not include costs to be borne by the owners of vehicles themselves who would have to spend Rs 575 crore ($122 million) for conversion of existing vehicles to CNG from petrol or diesel or the additional cost of buying new vehicles. Also, we are faced with an overall scarcity of natural gas in the country.

The day is not far away, therefore, when CNG would be more than twice as expensive as the current subsidized price. Would then the massive conversion that we have brought about prove to be the best option?

There is much pointing of fingers at the failure of government departments who are alleged not to have done their homework in planning the supply of CNG. But there was an expert committee set up to study the problem and come up with solutions. Did they carry out the necessary homework that was required?

For instance, did they consider all the safety aspects of CNG, the design and manufacturing specifications for cylinders and inspection systems that should be in place before CNG is supplied and used on such a large scale?

Did they look at the economics of this massive changeover to CNG and the practical feasibility or the ability of existing organizations for putting in place the infrastructure required? The fact is that none of the organizations in this country have experience in creating the supply system on the scale required overnight. The answer to these questions appears to be in the negative. But then, this is how decisions affecting the lives of millions are taken.

The decision in favor of CNG was taken without any trials being carried out under operating conditions with this as well as substitute fuels. One cannot recommend public decisions of this nature based on personal ill-health and misperceptions that diesel exhaust is the only culpable criminal to be banished.

Would that not echo those lines from the play, Cyrano de Bergerac, wherein a pronouncement in court read that the king fell ill eating marmalade, and hence marmalade would not be served in court any anymore?

There is overwhelming evidence now that CNG is not even the best fuel for reducing pollution, quite apart from its practical problems. The recent study by IIT Delhi clearly shows that the CNG change-over as being implemented will actually increase certain forms of pollution.