The government-run crude oil refiners have lined up investments of around Rs 30,000 crore (Rs 300 billion) to meet the Euro IV quality standards and are on track to meet the deadlines set for individual refineries.

The largest such refiner -- Indian Oil Corporation [Get Quote] -- has earmarked over Rs 13,500 crore (Rs 135 billion) to meet these specifications (essentially lower sulphur and aromatic hydrocarbons) in petrol and diesel at its seven refineries.

"We have put the necessary infrastructure in place to meet the Euro IV specifications and we are confident that we will be able to complete work at these refineries well before the 2010 deadline" said B N Bankapur, director (refineries), IOC.

IOC is pumping in Rs 3,000 crore (Rs 30 billion) for upgradation of its Haldia refinery and Rs 6,000 crore (Rs 60 billion) for the Gujarat refinery. It is installing equipments at Panipat and Barauni refineries with an investment of Rs 3,400 crore (Rs 3.4 billion). At its Guwahati and Digboi refineries minor investments of Rs 200 crore (Rs 2 billion) each is being made. At the Mathura refinery, the company is investing Rs 700 crore (Rs 7 billion).

On the other hand, Mangalore Refinery and Petrochemicals [Get Quote], a subsidiary of the Oil and Natural Gas Corporation, will spend Rs 8,000 crore (Rs 80 billion) to produce high grade diesel and petrol, conforming to higher emission standards like Euro IV and for expanding its capacity from the existing 9.69 million tonnes per annum (mtpa) to 15 mtpa.

Hindustan Petroleum Corporation Ltd [Get Quote] is investing Rs 4,000 crore (Rs 40 billion) on its refineries in Mumbai and Vishakapatnam. The company's Vishakapatnam refinery has recently been given Rs 2,000 crore (Rs 20 billion) to meet the Euro IV norms for petrol. "Work for Euro IV diesel quality still needs to begin as we have not got approval from our engineering committee. . . we should be able to meet the 2010 deadline," said an HPCL official.

Most of these refiners are currently feeding the domestic market. Analysts however say that the upgrade to Euro IV standard would position them well to tap the high margin international markets as and when they want to.

"India's fuel capacities are increasingly export oriented. Refineries which want to be global refineries, will be willing to invest more money to improve their ability to comply with stricter norms," said a Mumbai-based analyst.