Ministry of Petroleum & Natural Gas

Ministry of Petroleum & Natural Gas

Auto Fuel Policy: Background Vehicular emission and fuel quality assumed greater significance with the passing of Clean Air Amendment Act of 1990 (CAAA) by US Congress Rapid proliferation of gasoline/diesel vehicles since eighties and growing environmental pollution due to vehicular emission was a matter of concern and attracted serious attention of the Government Vehicular emission norms for new vehicles notified for first time in India in 1991 for both at manufacturing stage as well as for in-use vehicles. Idle emission norms (PUC) for on-road vehicles came into force from 1991 Major initiatives towards vehicular emissions and auto fuel quality launched with the notification under the Environment (Protection) Act 1996 2

Auto Fuel Policy Progressive Improvements Progressively vehicular emissions and fuel quality were tightened in 1996 and 2000 Lead free gasoline for vehicles with catalytic converters introduced in 1995 India achieved totally lead free gasoline in Feb 2000 RON of Gasoline increased from 87 to 89 in 2000 Sulphur in Gasoline reduced from 0.2 % wt to 0.1 % wt in 2000. 0.05 % wt ( 500 ppm) max sulphur for supplies to Metros Benzene in Gasoline 3 % vol. / 5 % vol. max. (metros/others) Diesel sulphur reduced from 1.0 % wt. to 0.25 % wt. (0.05 % wt. i.e. 500 ppm for Metros) in 2000. Diesel Cetane Number increased from 45 to 48 in 2000 3

India 2000 vehicle emission norms equivalent to Euro-I came into effect from year 2000 Bharat Stage II (equivalent to Euro-II) emission norms for new cars introduced in Delhi from year 2000 and extended to other 3 metros in 2001 Emissions norms for CNG and LPG vehicles notified in the year 2000 and 2001 respectively In view of several recommendations given by various Ministerial Committees and intervention of the Hon ble Supreme Court and High Courts, need for a comprehensive Government Policy on Auto Fuel was felt to avoid variance 4

Auto Fuel Policy Expert Committee The Govt. of India constituted an Expert Committee, under the chairmanship of Dr R. A. Mashelkar, DG, CSIR in September, 2001 to evolve a long term plan and road for implementation Terms of Reference recommend an Auto Fuel Policy for the country including major cities devise a road map for its implementation recommend suitable auto fuels and their specifications considering availability and logistics of fuel supplies processing economics of auto fuels possibilities of multi-fuel use in different categories of vehicles recommend attributes of automobile technologies fiscal measures for ensuring minimisation of social cost of meeting given level of environmental quality institutional mechanisms for certification of vehicles and fuels monitoring and enforcement measures 5

Auto Fuel Policy Roadmap for Vehicular Emission Norms Coverage Passenger Cars, Light Commercial Vehicles, & Heavy Duty Diesel Vehicles Entire Country Bharat Stage II - 1-4-2005 (Euro II equivalent) 11 major cities* (Delhi/NCR, Mumbai. Kolkata, Chennai, Bangalore, Hyderabad Ahmedabad, Pune, Surat, Kanpur and Agra) Bharat Stage III - 1-4-2010 (Euro III equivalent) Bharat Stage II - 1-4-2003 (Euro II equivalent) Bharat Stage III - 1-4-2005 (Euro III equivalent ) Bharat Stage IV * - 1-4-2010 (Euro IV equivalent) 2/3 Wheelers Bharat Stage II - 1-4-2005 Bharat Stage III - preferably from 1-4-2008 but not later than 1-4-2010 6

Roadmap for Fuel Quality Implementation Status The following road map was recommended: a) Euro-III standard auto fuels for 13 identified cities & BS-II standard auto fuels for rest of the country w.e.f. 1.4.2005 Due to production, import & other logistics constraints, the actual implementation was phased over six months for different states / locations i.e. up to September 2005. 7

Roadmap for Fuel Quality Implementation Status b) BS-IV auto fuels (Gasoline/Diesel) in NCR & 13 identified cities from 01.04.2010 Implemented w.e.f. 01.04.2010 in NCR-Delhi (comprising of 108 towns, of which 17 are class I cities), Mumbai, Chennai, Kolkata, Bangalore, Kanpur, Agra, Pune, Surat, Ahmedabad, Hyderabad, Lucknow & Sholapur c) BS-III auto fuels (Gasoline/Diesel) in the rest of the country from 01.04.2010 As per the revised approval of the Government, implemented in a staggered manner between April 01, 2010 and September 22, 2010 due to production and logistic issues involved. 8

Comparison of important specifications Product Quality Specifications Quality Specifications Gasoline BS-II BS- III Sulphur- 500 ppm Benzene- 3% (Metros) & 5% (Rest) Sulphur 150 ppm & Benzene 1% Euro-II Euro- III Sulphur- 500 ppm Benzene- 3%-5% Sulphur 150 ppm & Benzene 1% BS-IV Sulphur 50 ppm & Benzene 1% Euro-IV Sulphur 50 ppm & Benzene 1% BS-II Sulphur 500 ppm & Cetane Nominimum 48 Euro-II Sulphur- 500 ppm & Cetane No-minimum 48 Diesel BS- III Sulphur 350 ppm & Cetane Nominimum 51 Euro- III Sulphur 350 ppm & Cetane No-minimum 51 BS-IV Sulphur 50ppm & Cetane Nominimum 51 Euro-IV Sulphur 50 ppm & Cetane No-minimum 51

Consumption Share Diesel & Gasoline Diesel Qty. in MMT GRADE 2011-12 Share % 2012-13 Share % 2013-14 (up to Share % 31.08.13) BS-IV 10.2 15.9 11.1 16.1 4.6 16.0 BS-III 53.5 82.8 57.0 82.6 23.9 82.8 OTHERS 0.9 1.3 0.9 1.3 0.3 1.1 TOTAL 64.6 100.0 69.0 100.0 28.8 100.0 Gasoline BS-IV 3.8 24.1 3.9 24.8 1.8 24.3 BS-III 11.2 71.1 11.8 75.2 5.5 75.7 OTHERS 0.7 4.8 0.001 0 0.001 0 TOTAL 18.7 100.0 15.7 100.0 7.3 100.0 Average monthly Consumption of BS-IV Diesel has increased from 855 TMT (2011-12) to 928 TMT (Apr-Aug 2013) Average monthly consumption of BS-IV Gasoline has increased from 316 TMT/month (2011-12) to 353 TMT/ month (Apr-Aug 2013) 10

Consumption Share (%): BS-IV Gasoline 2012-13 April-August 2013 BS-IV BS-III 24.80% 75.20% BS-IV BS-III 24.30% 75.70% Though share of BS-IV Gasoline has come down from 24.8% in 2012-13 to 24.3% in April-August,2013, in volume terms average monthly consumption of BS-IV Gasoline has increased from 325 TMT/month (2012-13) to 353 TMT/ month (Apr-Aug 2013). Drop in share is because growth in consumption is more in smaller towns (BS-II) than in major towns (BS-IV) due to improved public transport (Metro service in Delhi). 11

Consumption Share (%): BS-IV Diesel 2012-13 April-August 2013 BS-IV BS-III Others 1.30% 1% 16.10% 16% 82.60% BS-IV BS-III Others 82.88% Though share of BS IV Diesel has come down marginally from 16.1% in 2011-12 to 16 % in April-August,2013, in volume terms average monthly consumption of BS-IV Diesel has increased from 925 TMT/month (2012-13) to 928 TMT/ month (Apr-Aug 2013). 12

Expansion of BS-IV Auto Fuels MoP&NG has decided to go beyond Auto Fuel Policy recommendations & expand BS-IV auto fuels to 50 more cities by March 2015 with preference to most polluted cities, state capitals & cities with million plus population subject to logistics constraints The ministry has constituted a Committee under Addl. Director, PPAC for identifying these cities, which has already identified 17 more cities. Out of these 17 cities, BS-IV fuels have already been expanded to: 7 cities i.e. Puducherry, Mathura, Vapi, Jamnagar, Ankleshwar, Hissar & Bharatpur in 2011-12. 6 cities i.e. Silvasa, Daman, Diu, Aligarh, Rae Bareilly & Unnao in April to October 2012. 4 cities i.e. Karnal, Kurukshetra, Yamunanagar & Valsad on 01.03.2013. 13

Future Plans for BS-IV fuels extension The Committee has identified following 15 cities for implementation in 2013-14 subject to logistics: Nizamabad, Medak, Mehboobnagar in Andhra Pradesh (3 cities) already introduced on 05.07.2013 Panjim, Vasco, Madgaon, Mapusa & Ponda in Goa (5 cities) Ahmed Nagar & Mahabaleshwar in Maharashtra (2 cities) Kosikalan & Vrindaban in Uttar Pradesh (2 cities) Dholpur & Hindaun in Rajasthan (2 cities) Kochi in Kerala (1 City) The remaining 18 cities shall be identified during 2013-14 to complete target of 50 cities by March 2015. 14

Million Plus Population Cities / Urban Agglomerates As per census data for 2011, there are 51 cities / Urban Agglomerates with population of million or more. There were only 35 such cities & Urban Agglomerates (UA) as per census data for 2001. The largest City / UA as per latest data is Greater Mumbai in Maharashtra with a population of 18.4 millions followed by Delhi (16.3 millions) & Kolkata (14.1 millions) The smallest City / UA to enter the list is Kota in Rajasthan with a population of 10,01,365, just above one million mark. Details 15

Recommendations of Auto Fuel Policy - Status Recommendations w.r.t. BS-III/IV auto fuels more than achieved Oil industry has invested over Rs 35,000 crore (US $ 7 billion) in upgrading facilities in refineries for production of BS-III/IV auto fuels. CNG extended to more than 60 cities and Auto LPG expanded to 270 cities Minimum 5 % blending of Ethanol is gasoline has been made mandatory Development of bio fuels / diesel from non-edible oil (Jatropha) has been taken up in big way 16

Recommendations of Auto Fuel Policy - Status Following major recommendations yet to be implemented in respect of in-use vehicles : Inspection & Maintenance system in 11 major cities and further extension to entire country Replacement of existing PUC system for analysing 4 vehicular exhaust emissions (CO, HC, NOx, CO 2 ) On Board Diagnostic System (OBD) in new vehicles Retro-fitment of after treatment devices for reduced emissions Mandatory performance checking of catalytic converters 17

Auto Fuel Policy Impact Analysis CPCB Source Apportionment Study Broad Conclusions Air quality in urban areas are affected by a variety of complex source mix PM pollution problem is significant and NO 2 is the emerging pollutant. Both require immediate attention to control their emissions Levels of PM10 and PM2.5 in the ambient air are significantly high irrespective of the type of locations Standards of SPM, PM10, PM2.5 exceeded at almost all locations and in all seasons 18

Auto Fuel Policy Impact Analysis CPCB Source Apportionment Study Broad Conclusions Even background locations indicate considerable levels of particulates, which could be occurring naturally and/or due transport of finer dust Concentration of pollutants are relatively higher at kerbside/ roadside locations Vehicles contribution at kerbside locations are much higher NO 2 is emerging pollutant O 3 is not of much concern Morning and evening peaks in CO levels corresponding to vehicular movement Significant sources of particulate pollution from soil and road dust 19

Auto Fuel Policy Impact Analysis CPCB Source Apportionment Study Broad Conclusions Road dust prominent source contributing to coarser fraction of PM10 Combustion sources including vehicles, DG sets, refuse burning etc emit particles in the finer size (< PM2.5) Significant quantities of SO 4 and NO 3 in PM10 indicates important contribution of secondary particles Within transport sector, PM10 contribution in terms of emission load is mainly from heavy duty diesel vehicles. Heavy duty vehicles are major contributor of NOx emission Re-suspension of road dust and combustion sources including vehicles, refuse burning & DG sets emerge as prominent sources of PM in all cities 20

Gap in Fuel Quality Indian auto fuel specifications versus specs in various countries such as Asia- Pacific region, European Union(EU), USA, indicate the following: Indian specifications are better / at par with most Asian countries. Indian specifications are at par with BRICS countries and moving at similar direction Gap between Indian specifications and that of USA, EU, Japan, South Korea is reducing Clean Development Initiatives Fuel Quality Improvements Bio Fuel Program (Ethanol, Bio Diesel) Emission reduction through gas substitution (CNG) Energy Efficiency Improvements 21

Auto Fuel Vision & Policy 2025 Terms of Reference Recommend roadmap for auto fuel quality till 2025 for the country, taking into account achievement under the last Auto Fuel Policy, emission reduction of in-use vehicles, growth of vehicles and supply and availability of fuels Recommend suitable mix of auto fuels including gas and its specifications considering : a) availability of infrastructure and logistics of fuel supplies b) processing economics of auto fuels c) improvement in quality of fuel vis-à-vis improvement in vehicle engine technology Recommend vehicular emission norms for various categories of vehicles and roadmap for their implementation. Recommend use of alternate fuels to minimise impact on environment Recommend fiscal measures for funding requisite upgradation of oil refineries, logistics and removal of inter-fuel pricing distortions 22

Status of Euro-IV in State Capitals S.NO. STATE CAPITAL BS IV S.NO STATE / UT IMPLEMENTED. CAPITAL BS IV IMPLEMENTED 1 Andhra Pradesh Hyderabad YES 19 Nagaland Kohima NO 2 Arunachal Pradesh Itanagar NO 20 NCT of Delhi Delhi YES 3 Assam Dispur NO 21 Orissa Bhubaneswar NO 4 Bihar Patna NO 22 Puducherry Puducherry YES 5 Chhattisgarh Raipur NO 23 Punjab Chandigarh NO 6 Goa Panaji NO 24 Rajasthan Jaipur NO 7 Gujarat Gandhi Nagar YES 25 Sikkim Gangtok NO 8 Haryana Chandigarh NO 26 Tamil Nadu Chennai YES 9 Himachal Pradesh Shimla NO 27 Tripura Agartala NO 10 J&K Srinagar /Jammu NO 28 Uttar Pradesh Lucknow YES 11 Jharkhand Ranchi NO 29 Uttrakhand Dehradun NO 12 Karnataka Bengaluru YES 30 West Bengal Kolkata YES 13 Kerala Thiruvananthapur am NO 31 Andaman and Nicobar Port Blair NO 14 Madhya Pradesh Bhopal NO 32 Chandigarh Chandigarh NO 15 Maharashtra Mumbai/ Nagpur YES 33 Dadra and Nagar Haveli Silvassa YES 16 Manipur Imphal NO 34 Daman and Diu Daman YES 17 Meghalaya Shillong NO 35 Lakshadweep Kavaratti NO 18 Mizoram Aizawl NO BS-IV Auto fuels have been expanded to 11 State Capitals. 24

State Name Name of Urban Agglomeration/City Million plus Cities (2011) BS-IV Population State Name Name of Urban Millions Agglomeration/City BS-IV Population Millions MAHARASHTRA Greater Mumbai UA Yes 18.4 PUNJAB Ludhiana (M Corp.) No 1.6 NCT OF DELHI Delhi UA Yes 16.3 MAHARASHTRA Nasik UA No 1.6 WEST BENGAL Kolkata UA Yes 14.1 ANDHRA PRADESH Vijayawada UA No 1.5 TAMIL NADU Chennai UA Yes 8.7 TAMIL NADU `Madurai UA No 1.5 KARNATAKA BANGALORE UA Yes 8.5 UTTAR PRADESH Varanasi UA No 1.4 ANDHRA PRADESH Hyderabad UA Yes 7.7 UTTAR PRADESH Meerut UA Yes 1.4 GUJARAT Ahmadabad UA Yes 6.4 HARYANA Faridabad (M Corp.) Yes 1.4 MAHARASHTRA Pune UA Yes 5.0 GUJARAT Rajkot UA No 1.4 GUJARAT Surat UA Yes 4.6 JHARKHAND Jamshedpur UA No 1.3 RAJASTHAN Jaipur (M Corp.) No 3.1 JAMMU & KASHMIR Srinagar UA No 1.3 UTTAR PRADESH Kanpur UA Yes 2.9 MADHYA PRADESH Jabalpur UA No 1.3 UTTAR PRADESH Lucknow UA Yes 2.9 WEST BENGAL Asansol UA No 1.2 MAHARASHTRA Nagpur UA No 2.5 MAHARASHTRA Vasai Virar City (M Corp.) No 1.2 UTTAR PRADESH Ghaziabad UA Yes 2.4 UTTAR PRADESH Allahabad UA No 1.2 MADHYA PRADESH Indore UA No 2.2 JHARKHAND Dhanbad UA No 1.2 TAMIL NADU Coimbatore UA No 2.2 MAHARASHTRA Aurangabad UA No 1.2 KERALA Kochi UA No 2.1 PUNJAB Amritsar UA No 1.2 BIHAR Patna UA No 2.0 RAJASTHAN Jodhpur UA No 1.1 KERALA Kozhikode UA No 2.0 JHARKHAND Ranchi UA No 1.1 MADHYA PRADESH Bhopal UA No 1.9 CHHATTISGARH Raipur UA No 1.1 KERALA Thrissur UA No 1.9 KERALA Kollam UA No 1.1 GUJARAT Vadodara UA No 1.8 MADHYA PRADESH Gwalior UA No 1.1 UTTAR PRADESH Agra UA Yes 1.7 CHHATTISGARH Durg-Bhilainagar UA No 1.1 ANDHRA PRADESH GVMC (MC) No 1.7 CHANDIGARH Chandigarh UA No 1.0 KERALA Malappuram UA No 1.7 TAMIL NADU Tiruchirappalli UA No 1.0 KERALA Thiruvananthapuram UA No 1.7 RAJASTHAN Kota (M Corp.) No 1.0 KERALA Kannur UA No 1.6 BS-IV Auto fuels have been expanded to 15 million plus cities. 25

Polluted Cities on RSPM: As Per MoEF (Feb. 2009) Rank BS-IV BS-IV City implementation Rank City implementation 1 Gobindgarh No 26 Meerut Yes 2 Ludhiana No 27 Hissar Yes 3 Khurja No 28 Varanasi No 4 Khanna No 29 Asansol No 5 kanpur Yes 30 Pune Yes 6 Lucknow Yes 31 Indore No 7 Jharia No 32 Dhanbad No 8 Firozabad No 33 Jabalpur No 9 Chandrapur No 34 Dehradun No 10 Agra Yes 35 Jamnagar Yes 11 Jamshedpur No 36 Howrah No 12 Gwalior No 37 Rourkela No 13 Jhansi No 38 Korba No 14 Noida Yes 39 Guwahati No 15 Delhi Yes 40 Nagpur No 16 Jalandhar No 41 Kolkata Yes 17 Faridabad Yes 42 Jaipur No 18 Hubli-Dharwad No 43 Ujjain No 19 Ranchi No 44 Visakhapatnam No 20 Jodhpur No 45 Sholapur No 21 Alwar No 46 Naya Nangal No 22 Raipur No 47 Chandigarh No 23 Patna No 48 Mumbai Yes 24 Satna No 49 Sibsagar No 25 Kota No 50 Ankleshwar Yes Source: Industry BS-IV Auto fuels have been expanded to 13 polluted cities. 26