Oil companies to spend Rs 28,750 crore to transition from Euro IV to Euro VI emission norms

In a major step to curb vehicular pollution, India will leapfrog directly from Euro IV emission norms for petrol and diesel to Euro VI standards and the oil PSUs will invest Rs 28,750 crore for the transition.

A decision was taken at an inter-ministerial meeting on Wednesday to advance the date by four years to April 1, 2020 for implementation of Bharat Stage VI (equivalent to Euro VI norms followed globally) for supply of cleaner auto fuel, by altogether skipping the Euro V grade norms.

At the meeting Transport Minister Nitin Gadkari, Oil Minister Dharmendra Pradhan, Heavy Industries Minister Anant Geete and Environment Minister Prakash Javadekar sorted out issues over the implementation schedule. The decision has been taken at a time when an intense debate is going on rising level of pollution, while an innovative odd-even formula is being tried in the National Capital to check vehicular pollution.

India currently has Bharat Stage-III, equivalent of Euro-III specifications, across the country and BS-IV in major cities. BS-IV will be supplied in most big cities by April 2016 and all over the country from April 2017.

While Auto Fuel Policy had recommended implementation of BS-VI norms by 2024, Pradhan in October 2015 stated that his ministry will go straight from BS-IV to BS-VI by 2020 as there was not much difference in specifications of Euro-V and Euro-VI fuel.

However, the Transport Ministry in a draft notification in November put the date for supply of BS-VI fuel at April 1, 2021.

"Government has decided to leapfrog from BS-IV to BS-VI directly by April 1, 2020. We have decided to skip BS V emission norms. It is a bold decision and a commitment to environment," Gadkari told PTI after the meeting.

All the other ministries have assured cooperation to make the implementation successful, he added.

Pradhan said oil PSUs will invest about Rs 28,750 crore for switching over to BS-VI auto fuels. "To discuss details of fuel specifications and other relevant issues of BS-VI auto fuels, a group of concerned secretaries will be formed which will give its report within two weeks."

BS-IV fuels contain 50 parts per million (ppm) sulphur, while BS-V and BS-VI grade fuel will have 10 ppm sulphur. "I appeal to automobile manufacturers to cooperate in this in the larger interest of the country," Gadkari said.

Automobile industry body SIAM, which has been opposing the skipping of BS V to jump to BS VI, said it would comment only after seeing the notification. 
 
A Road Ministry statement said it would soon issue a notification to move to BS VI, while withdrawing its earlier notification of November to advance dates for implementation of BS-V norms to April 1, 2019 and BS-VI norms to April 1, 2021.

"The Ministry is also sure that the Indian Automobile industry with its technical competence and commitment to environment will rise to the occasion and support the decision," it said.

Currently, BS-IV auto fuels are being supplied in whole of northern India covering J&K, Punjab, Haryana, Himachal Pradesh, Uttarakhand, Delhi, parts of Rajasthan and western UP. The rest of the country has BS-III grade fuel.

From April 1, 2016, all of Goa, Kerala, Karnataka, Telangana, Odisha, Union Territories of Daman and Diu, Dadra and Nagar Haveli and Andaman & Nicobar will get BS-IV fuel. The rest of the country will get supplies of BS-IV fuel from April 1, 2017.

"Keeping in view the environmental impact, rising pollution levels and consequent health hazards due to vehicular pollution, Ministry of Petroleum & Natural Gas is of the view that the country should switch over directly from BS-IV to BS-VI fuel standards," Pradhan said.

The development comes at a time when air pollution, especially in the Capital, has become a major issue. While Delhi is currently observing odd-even scheme, Supreme Court has cracked down on diesel vehicles by banning registration of diesel cars and SUVs with engines above 2,000 cc.