India auto/fuel policy report gets gov't. OK: ULSD vague

Diesel Fuel News, Jan 21, 2002 by Jack Peckham

An inter-ministerial "interim" task force report for an "Auto Fuel Policy" just won initial Indian government approval, setting the stage for Euro-III vehicle emissions limits -- but the deadline for ultra-low-sulfur diesel (ULSD) and Euro-IV standards is left vague, for now.

The report, obtained by Diesel Fuel News, recommends "analysis of investment and distribution logistics issues for reducing sulfur content in both petrol and diesel to 50 ppm maximum ... to be undertaken pending notification of Euro IV specifications in the European Union."

Since Europe is already moving rapidly toward ULSD and tougher Euro IV standards, this seems to imply that India is likewise heading down the ultra-clean petroleum fuels path.

However, debate continues over the exact meaning of the "interim" task force report, which still awaits finalization, according to task force director, R.A. Mashelkar of Council for Scientific & Industrial Research (CSIR).

Sharpest criticism of the report comes from Center for Science & Environment (CSE), a pro-natural-gas "green" group.

Also critical of the government policy, but with a more even-handed view, is Tata Energy Research Institute (TERI).

TERI policy analyst Ranjan Bose says the Mashelkar report appears to be timid about recommending more aggressive deadlines for ULSD and Euro-IV standards. That's because of "undue weightage to the concerns of oil companies in terms of the investments required to upgrade refineries," Bose told Diesel Fuel News.

Euro III standards are "certainly not adequate" for cutting severe air pollution in India's biggest cities, Bose said.

The task force report recommends Euro-III emissions standards in seven "mega-cities" by April 1, 2005, on top of Euro-2 standards in the rest of the country by the same date. The rest of the country would move to Euro III no later than 2010, but this potentially could be accelerated, as could Euro-IV adoption.

The report accepts the use of compressed natural gas (CNG) and LP-Gas for motor fuels but rejects the push by some "green" groups to force a virtual CNG monopoly in major cities.

"Mandatory substitution of liquid fuels by gaseous fuels for automotive purposes will reduce the consumption of petrol and diesel which are presently surplus [in India]," the report says. "This may lead to under-utilization of installed processing facilities which in turn may result in shortage of other petroleum products due to the integrated nature of refining where besides petrol and diesel, large number of products like LPG, naphthas, solvents, hexane, ATF, kerosene, LDO, lubes, fuel oil, bitumens, coke, waxes and various other specialty products and feedstocks for petrochemical, chemical, fertilizer and other industries are also produced."

This refining investment-stranding issue is usually ignored by "green" groups, thus understating the already huge cost of alt-fuel mandates for consumers and taxpayers.

The report stopped short of endorsing a quick leapfrog to Euro IV standards, saying the costs of such a move must be studied completely. India's heavy vehicle makers, and producers of 2/3-wheeler vehicles, today lack easiest access to low-cost emissions technologies, the report notes. Another warning: Converting existing vehicles to CNG is "not the best option" due to many technology, emissions and safety issues with conversions.

As for refining industry upgrade costs, the report finds that four refineries today -- Mathura, Reliance, Bharat Petroleum and Haldi -- are already making a 500 ppm sulfur diesel fuel, and that more investment would be required for ULSD.

While CNG can be one of the acceptable fuels for severely polluted cities like Delhi, "there are other fuels as well, like ULSD, that can be used with proper technology," CSIR's Mashelkar told the Times of India in a published interview last week.

As for claims that India lacks effective inspection programs that would be required for ULSD and catalyst technology, the same problem exists today with CNG, he said. Fires and deadly explosions are among the CNG problems plaguing India in the wake of a Supreme Court order forcing CNG bus conversions.