LP Gas based autos legalised now
Automotive Pollution is a serious problem in all major Indian cities. It has reached
alarming proportions in our Metro Cities and in Delhi, the Supreme Court has taken serious
cognisance of the same, due to a public interest petition. The Supreme Court has directed
the Government of India to take necessary steps for reducing this pollution. In
particular, conversion to gaseous fuels like CNG/LPG have been ordered.
The Government of India appreciated the advantages of using LP Gas as Auto Fuel to reduce vehicular pollution and decided to implement the same in India in an orderly manner. Since LP Gas was being used for the first time in India, suitable standards had to be developed and necessary legislation passed for orderly implementation and to avoid hazards due to unsafe equipment and practices. Two committees were constituted by the Government of India, one technical and one commercial, to examine the various issues involved and to make suitable recommendations. The committees have completed their reports and submitted the same to Government of India, who had accepted the recommendations in principle and had decided to go ahead with the implementation of the same. Necessary legislation’s have to be passed to alter the Motor Vehicles Act, LP Gas Control Order and Essential Commodities Act to allow LP Gas to be used as an Auto Fuel. Also standard for Auto Kits and its components have to be developed.
All these have now been completed and LPG as auto fuel is a reality today. With this, introduction of LP Gas as a Auto Fuel, will become a reality in India.
LP Gas as a Auto Fuel is beneficial to all concerned not only by way of economics but also by way of much lower emission levels. LP Gas can also be used in place of diesel as a fuel . Here due to the lower diesel prices prevailing in the market the economics are not favourable, but the emission levels are definitely lower with LP Gas particularly unburnt Hydro Carbons and Oxides of Sulphur & Nitrogen. Therefore, there are good reasons for promoting the use of LP Gas as Auto Fuel, for all types of Vehicles.
It could be argued that LP Gas that will be used in automobiles will be imported and there will be out flow of foreign exchange. The counter argument is that India is a net importer of petroleum products and that it is advisable to spend the foreign exchange on a clean fuel like LP Gas rather than gasoline or diesel that contribute to the vehicular pollution of our cities.
Further, if we consider the "externalities" i.e., the cost of cleaning up the damage to the environment due to pollution caused by other conventional vehicle fuels, the benefits of using LP Gas will increase substantially. It is estimated that the yearly cost of cleaning up the damage to the environment due to industrial and urban development could be as high as 4% of annual GDP.
The Environment Ministry and other policy making authorities should take note of the "externalities" and give necessary incentives for promotion of LP Gas as a Motor fuel. Some of the suggested incentives are as follows:
(1) Reduce the basic duty on LP Gas from 10% to 0%. LP Gas will still suffer 10% countervailing duty and 2% surcharge (currently, customs duty on LP Gas is 23.2%)
(2) No Sales Tax on LP Gas sold as motor vehicle fuel.
(3) No Excise Duty
and Sales Tax on LP Gas conversion kits.
It must be noted that in Countries like Netherlands, Australia, Italy, Korea etc., where LP Gas as an auto fuel has been highly successful, government support and tax incentives have played a key role. It may also be noted that in these countries, it was made mandatory for taxis to use LP Gas as fuel.
The rules approved by
the Government for use of LPG as Auto Fuel specify sale of LPG through
dispensing stations only.These are being set-up first in the major cities which have
a sizeable vehicle population. Conversion of vehicles to LPG can take place in these
cities first.
