6th October, 2003
Ministry of Petroleum & Natural Gas


Shri Ram Naik, Minister of Petroleum & Natural Gas, in a Press Conference held here today, announced the National Auto Fuel Policy, which was approved by the Cabinet on 3.10.2003.

Broadly, the policy gives a roadmap for achieving various vehicular emission norms over a period of time and the corresponding fuel quality upgradation requirements. While it does not recommend any particular fuel or technology for achieving the desired emission norms, it suggests, taking into account security of supplies and existing logistics perspectives, that liquid fuels should remain as main auto fuels throughout the country and that the use of CNG/LPG be encouraged in cities affected by higher pollution levels so as to enable vehicle owners to have the choice of the fuel and technology combination. The report also recommends measures for improving the present mechanism of checking pollution from in-use vehicles.

The salient features of the proposed Auto Fuel Policy are detailed in the Annexure.

The report has estimated that the existing domestic oil refineries, in addition to the investment of Rs. 10,000 crore already made to achieve Euro-I auto fuel specifications, would need to incur an additional investment of around Rs. 18,000 crore by the year 2005. Further investment of around Rs. 12,000 crore will need to be made during the period 2005-2010. The investment requirement of the automobile industry is estimated at around Rs. 25,000 crore over this period.

Shri Naik said that in view of a number of Public Interest Litigations had been filed in the various Courts of the country seeking for issuance of directions for controlling vehicular pollution in Delhi, Mumbai, Kolkata, etc. In order to take a holistic view of the diverse aspects of auto emissions, auto technologies and auto fuel quality on the one hand and the social costs and security of fuel supply on the other, it was decided at a meeting chaired by the Prime Minister on 30.8.2001 to set up a Committee of Experts of national repute headed by Dr. R.A. Mashelkar, Director General, Council of Scientific & Industrial Research (CSIR), to make recommendations to the Government on an appropriate Auto Fuel Policy for the country. Accordingly, this Ministry constituted an Expert Committee on 13.9.2001 to suggest an Auto Fuel Policy for India, along with a roadmap for its implementation as also suitable auto fuels, automobile technologies, fiscal measures, etc., to attain the desired objectives.

The Committee submitted its final report on 25.9.2002 which was examined by the Ministry in consultation with the Ministries of Finance, Environment & Forests, Road Transport & Highways, Non-Conventional Energy Sources, Planning Commission and State Governments.



  1. Vehicular Emission Norms: - A road map for vehicular emission norms for new vehicles would be as follows:
  2. Coverage

    Passenger Cars, light commercial vehicles

    & heavy duty diesel vehicles

    2 / 3 wheelers

    Entire country

    Bharat Stage II - 1.4.2005

    Euro III equivalent 1.4.2010

    Bharat Stage II 1.4.2005

    Bharat Stage III* Preferably from 1.4.2008 but not later than 1.4.2010

    11 major cities

    (Delhi / NCR, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur & Agra)

    Bharat Stage II - 1.4.2003

    Euro III equivalent 1.4.2005

    Euro IV equivalent* 1.4.2010

    *- These schedules would be reviewed in the year 2006, when Euro-II equivalent norms would be implemented in the entire country and Euro-III equivalent norms would be implemented in 11 major cities.

    It can be observed that the cities facing serious pollution levels have been brought under a separate road map for quicker adoption of emission norms.

  3. Auto fuels:- The twin objectives of providing assured supply of auto fuels and meeting environmental concerns would be achieved by following the below mentioned broad policy:

    1. Liquid fuels would be the main auto fuels throughout the country by progressively upgrading the quality/specifications in line with vehicular emission norms.
    2. The use of CNG/LPG would be encouraged in the cities affected by high vehicular pollution to enable the vehicle owners to have the choice of fuel and technology combination to meet the higher emission norms in such cities.
    3. To accelerate the development of other alternative fuel vehicles including battery powered vehicles, hydrogen and fuel cell vehicles, a comprehensive programme of policy support, R&D support and other measures for zero emission vehicles would be drawn up.
    4. Technologies for producing ethanol / bio-fuels from different renewable energy sources and vehicles to utilize these bio-fuels would be encouraged by providing R&D and other support through fiscal and financial measures.


    (iii) Reduction of pollution from in-use vehicles:- For reduction of pollution from in-use vehicles, the following measures are suggested:

    1. New improved Pollution Under Control (PUC) checking system for vehicles.
    2. Inspection & maintenance (I&M) system for vehicles.
    3. Performance checking system of catalytic converter and conversion kits for CNG/LPG.
    4. Augmentation of city public transport system.
    5. Compliance of emission norms by city public service vehicles and inter State vehicles.


    Road map for emission of compliance of emission norms:

    1. After 1.4.2007, inter-State buses/trucks would not be allowed to originate/or terminate in Delhi unless they meet minimum of India 2000 emission norms. The cut off point for meeting Bharat Stage II norms will be 1.4.2011.

    2. In respect of 10 other major cities, all inter-State buses will have to meet w.e.f 1.4.2006 a minimum of 1996 emission norms in case they were registered before 1.4.2000. They have to meet w.e.f 1.4.2008, a minimum of India 2000 norms if they were registered after 1.4.2000.

    3. In respect of 10 other major cities, all inter-State buses would need to meet a minimum of Bharat Stage-II emission norms w.e.f. 1.4.2011, if these vehicles are registered after 1.4.2005.

    (iv) Research & Development for Air Quality Data and Health Administration: - Currently, the air quality data is insufficient in the country. Studies would be undertaken for scientific data collection, identification of critical pollution and emission source apportionment. The information data base linking air pollution / vehicular pollution related diseases and air pollution levels would be strengthened. The interface between regulatory authorities and health administration for devising the right strategies in the direction of public health would be improved.

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