New fuel-efficiency norms to be delayed

India will continue to trail the European Union in vehicle emission norms as the government is likely to miss its target of launching the Bharat Stage-V (BS-V) type fuel by 2015.

Tagged as a superior and cleaner fuel than the BS-IV, currently is in use in the national capital region and 30 cities across the country, BS-V will not be launched commercially before 2017, say officials.

India is served by BS-IV fuel in cities such as Mumbai, Chennai, Delhi and BS-III fuel in the rest of the country.

While EU had adopted Euro-V in 2009, the road map for a similar upgrade by India looks set to get delayed.

Ambuj Sharma, additional secretary in the ministry of heavy industries and public enterprises, said: “By 2010, we almost caught up with Europe in fuel emissions with BS-IV.

“By 2014-end, we should have 40 cities supplied with BS-IV fuel; these will take care of 80 per cent of transport. We will have to invest a lot in BS-V.”

Oil companies have not been able to meet the target because of the heavy investment required for a technology upgrade.

Oil firms invested Rs 30,000 crore (Rs 300 billion) between 2005 and 2010 towards upgrade for supplying BS-IV fuel.

According to estimates by the ministry of petroleum and natural gas, oil companies will have to shell out Rs 80,000 crore (Rs 800 billion) more to move to BS-V.

Revised estimates show about 50 cities will be covered by BS-IV fuel by 2015 and the entire country will come under this type of fuel by 2017.