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Cabinet approves Auto Fuel policy; Euro-II norms by Apr 2005

The Cabinet on Tuesday approved the recommendations made by the experts committee on Auto Fuel Policy, which entails implementation of Bharat Stage II (Euro-II) vehicle emission norms in the country by April 1, 2005, a move that would involve an investment of Rs 170 billion by the oil industry.

The cabinet also decided to authorise the concerned ministries/departments to take steps for the implementation of the recommendations made by the committee, Parliamentary Affairs Minister Pramod Mahajan told reporters after the Cabinet meeting in New Delhi.

The committee headed by Dr R A Mashelkar, director general, Council of Scientific and Industrial Research, which submitted its report to the government on January 1, 2002, had recommended that Bharat Stage-II (Euro-II) norms, presently in force in four metros, be introduced in Bangalore, Hyderabad and Ahmedabad by end-2003 and the entire country from April 1, 2005, he said.

Euro-III equivalent emission norms for all categories of vehicles (excluding two and three wheelers) should be introduced in Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad and Ahmedabad from April 1, 2004 and extended to other parts of the country from 2010, Mahajan said.

"The choice of fuel and vehicular technology would be left to the owners and operators of vehicles with the government prescribing only the vehicular standards," the minister said.

The Mashelkar Committee report said the government should provide fiscal benefits to domestic oil and auto industry as investments of upto Rs 350 billion and Rs 250 billion would be required to be made by these sectors respectively to upgrade the facilities and technology to meet the Euro-III emission norms.

Outlining a road map for the implementation of future vehicular emission norms and auto fuel quality, the report said the government should encourage usage of alternative fuels like CNG, LPG, ethanol and electricity.

The report said the government should provide R&D support to increase the use of such fuels while giving the option of fuel and vehicles to the users.

The recommended Euro-II and Euro-III emission norms and auto fuel quality along with other measures would help to achieve the desired air quality in major cities of the country, the report said.

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