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India could opt for cleaner diesel in cities by 2010

Diesel Fuel News, July 22, 2002 by Jack Peckham

An upcoming inter-ministerial auto/fuel policy report for India's government, led by prestigious Council of Scientific and Industrial Research (CSIR), could recommend ultra-low sulfur diesel (ULSD) requirements for major cities, possibly prior to 2010.

The final report (named for CSIR director R.A. Mashelkar), due out by end-July or early August, would clarify vehicle emissions limits and fuel quality standards in order to slash air pollution throughout India (see Diesel Fuel News 1/21/01, p10).

The first draft report left ULSD deadlines and Euro-IV type emissions limits vague, although it recommended further analysis of 50-ppm ULSD sulfur limits.

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India has already adopted "Stage 2" diesel limits (500-ppm sulfur) for major metro areas, and debate continues on whether "Stage 3" would be 350-ppm sulfur or a lower limit (possibly 50 ppm or less for ULSD).

Expanding "Stage 2" sulfur limits beyond India's seven largest cities to the entire country could cost from $2 billion to as much as $5 billion, according to two different Times of India reports quoting India's Minister of Petroleum, Ram Naik.

But expanding India's fuel refining capacity along with new desulfurization, cetane, density, end-point and aromatics limits could cost as much as $7 billion, according to another recent estimate (see Diesel Fuel News 1/21/02, p12).

Establishing Euro-3 emissions norms for India's biggest cities would take effect by April 2005, then nationwide by 2010, the Times of India quoted Naik as saying. But tougher Euro-4 norms could emerge in the report's recommendations for 2010, at least for major cities, some sources tell us.

Of Delhi's 2.5 million vehicles, only about 2% run on compressed natural gas (CNG), Naik said. Hence, oil refiners might not fear very large losses of the total fuels marketshare even if ULSD isn't required soon in the major cities.

Since diesel consumption today is already seven times the gasoline consumed in India, refiners may focus investment instead on improving the entire diesel pool rather than accelerate investment just for city ULSD, one source told us.

Manufacturing Industry

India could opt for cleaner diesel in cities by 2010

Diesel Fuel News, July 22, 2002 by Jack Peckham

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