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July 26, 1999

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The Rediff Business Special/Veeresh Malik

Fuel, auto industries steer clear of solutions to emissions problem

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The first ever conference on a joint approach by the automobile and vehicle fuel industries towards combating air pollution was held last week under the aegis of the Tata Energy Research Institute. The initiative is likely to pave the way for more such events that will highlight the need for eco-friendly technologies.
The conference assumed significance ever since the Supreme Court ordered a ban on Euro-unfit vehicles in the National Capital Region.

However, mention has to be made of an unscheduled talk in support of continuation of diesel as vehicle fuel. The talk revealed the extent to which the two industries will go to protect their own interests at the cost of public interest.

TERI is engaged mainly in research on important areas of national and global relevance, and is known for fairly non-controversial positions on most matters. Staffed by retired civil servants and public sector undertaking chiefs, TERI has been known to be an old-boys club.

But this conference was different. It tried to bring the automobile industry and the oil industry together.

The two industries have been under fire of late, particularly from the Supreme Court, for their unaccountability, lack of credibility and devil-may-care attitude to the menace of harmful automobile emissions.

Petrol filling stations: Suppliers of adulterated fuel?? Moreover, motor vehicle users in India have been increasingly suspicious of the quality of fuel supplied by the government owned oil companies. It is believed that as much as 70 per cent of the kerosene allocated for distribution at subsidised rates to the poor, finds its way into costlier petrol or diesel. Ditto for naphta and solvents. Filling station dealers complain about making losses due to low returns. Still they refuse to let go of their franchises!

Differential price systems for diesel and petrol (diesel costs 40 per cent less than petrol) has tempted even green automobile manufacturers like Toyota to launch diesel automobiles in India. An acrimonious debate on the carcinogenic and other "dirty" aspects of diesel has led the environmentalists into demanding a total ban on diesel for private vehicles. Apparently, use of "dirty diesel" in public transport vehicles can be allowed for a larger social good.

The argument in favour of use of diesel in India is backed up by studies done abroad. Low sulphur diesel, it is being said, can be a good fuel if there are regular inspections, vehicle maintenance programmes and decent traffic management. Dr Haren Gandhi, global chief of fuel economy and emission technology for Ford Motors, sought to convince the conference that diesel is really safe.

Other speakers even went to the extent of calling anti-diesel non-government organisations liars. An infuriated Dilip Biswas, chairman, the Central Pollution Control Board, said the conference was like a visit to the commode. You sit, you deliberate, you deliver and then you pull the flush to get on with better things in life.

Others opined that it is India's tragedy that the ground realities are seldom taken into account when such deliberations take place.

While we possess surplus natural gas with over 75 years of proven reserves, most of it is flared away as the liquid fuel lobby prevents it from striking root.

The conference covered air pollution and health, fuel and emission standards, enhancing environmental performance of in-use vehicles, advanced automobile technologies and challenges, refining technology and economics of fuel quality upgradation, alternate fuels and so forth.

By and large, the sessions were devoid of meaningful discussions on public transport. There was no attempt to analyse the economic aspect of some of the subjects discussed. Some of the comments by the oil industry's bigwigs were flippant: there was no attempt to develop any accountability.

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