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Tough emission norms to cost Indian refiners Rs 350 billion

Indian refineries need to invest Rs 350 billion in the next eight years to improve the quality of fuels to abide by strict emission norms, a government report said.

Within this sum, refiners need to spend Rs 170 billion to meet emission norms in 2005, and another Rs 180 billion to meet stricter standards by 2010, an interim report of a government committee on Auto Fuel Policy said.

The report, made public on Tuesday, also said India's automobile industry would need to invest about Rs 250 billion on technology to reduce emissions from vehicles.

Petroleum ministry officials said the recommendations would be considered by the federal cabinet later this month.

The report has suggested that the oil and automobile industries should be given import and excise duty concessions for equipment needed for upgrading and offered low-interest loans for modernisation.

The decision to set up the committee was taken in a meeting called by Prime Minister Atal Behari Vajpayee on August 30.

The panel was asked to suggest automobile fuels, technologies and fiscal measures needed to meet environmental standards. It will submit its final report in March.

India has 17 refineries with an annual capacity of 114 million tonnes.

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