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June 25, 2002 | 1252 IST
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Govt to come out with an auto fuel policy: Naik

The government would come out with a separate Bill outlining an auto fuel policy based on the recommendations of an expert committee, Minister of Petroleum and Natural Gas Ram Naik said on Tuesday.

Naik said in Bangalore that the committee headed by director general of Council of Scientific and Industrial Research, R A Mashelkar, would submit its final report by this month-end.

The government, he said, would promptly examine the report and come out with a bill outlining an auto fuel policy, which would be in tune with judicial pronouncements in this regard, and "what is desirable, what is possible and what should be done."

He said 'Bharat Stage II norms', which have already been introduced in four mega cities last year, would be introduced in Bangalore, Hyderabad and Ahmedabad latest by 2003.

Naik, who was inaugurating a 'Question-Answer Session on Hydroprocessing' in Bangalore, said introduction of Bharat Stage II norms in the entire country would lead to an additional investment of Rs 250 billion in the refineries.

Euro III equivalent emission norms for all categories of vehicles would be introduced in seven mega cities including Bangalore from April 1, 2005 and in the entire country by 2010, the minister said.

The government had taken a policy decision to blend five per cent of ethanol in petrol all over the country, Naik said.

Three pilot projects for the use of five per cent ethanol in petrol, operational in Uttar Pradesh and Maharashtra, have indicated that such usage may be encouraged and even percentage of ethanol can be further increased.

Stating that there was also a proposal to develop use of ethanol in diesel, Naik said a fund of Rs 78 million had been allocated by the ministry for research in this regard.

Naik also expressed the hope that many of the 140 LPG centres planned in the country would be commissioned this year.

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