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Policy Initiatives
National Auto Fuel Policy
The Auto Fuel Policy aims to comprehensively and holistically
address the issues of vehicular emissions, vehicular
technologies, and auto fuel quality in a cost-efficient
manner while ensuring the security of fuel supply. The
policy objectives are:
(i) Ensure sustainable, safe, affordable and uninterrupted
supplies of auto fuels of right quality to support social
and economic development. One of the key factors for
meeting this policy objective is to diversify the sources
and reduce dependence on any single source of supply.
(ii) Over the years, infrastructure for the import
of crude and crude products,x their processing and production,
and storage and transportation has been created in the
country. Considerable investment has been made in developing
this infrastructure and the logistics for the distribution
of petroleum products in the country. The Auto Fuel
Policy is committed to an optimal utilization of such
an infrastructure.
(iii) Assess the future trends in emission and air
quality requirements from the view point of public health,
and establishment of a consistent framework within which
different policy options to reduce emissions can be
assessed. It is, therefore, required that environmental
objectives for air quality be determined, emission reduction
targets be established, input data on costs and benefits
be collected and cost effective measures to reduce emissions
be identified. Appropriate institutional arrangements
to be put in place to where such activities can be handled
effectively.
(iv) Adopt such vehicular emission standards that they
together with other measures, will be able to make a
decisive impact on air quality, without placing an undue
burden on the people.
(v) Vehicular emission standards and auto fuel quality
should offer choice to the citizens and equally a choice
to automobile manufactures in matters of technology
selection. Principles of widening the choice and promoting
competition amongst automobile technologies, within
the limits that are imposed by the availability of auto
fuels and security of their supplies.
(vi) As elsewhere in the world, the Government should
decide only the vehicular mission standards and the
corresponding fuel specifications without specifying
vehicle technology and the type of fuel.
(vii) The requirement of investments to reach vehicular
technology and fuel quality of Euro III equivalent levels
throughout the country is estimated in the range of
Rs. 50,000 - Rs. 60,000 crore. Therefore, to achieve
the air quality targets by gradually improving emission
standards and a phased up gradation of fuel quality
and vehicular technology, taking note of the financial,
technical and institutional considerations as also the
absorptive capacity is required.
(viii) Administered fuel prices, carrying subsidies
and cross-subsidies, lead to distortions in fuel usage
pattern. Determination of fuel prices on the principles
of import parity and putting in place a medium term
fiscal regime as early as possible are necessary for
the sustainability of fuel usage pattern.
(ix) In order to remain relevant, the Auto Fuel Policy
must undergo periodic revisions, preferably at an interval
of five years. This will allow adjustments in the Policy
that may become necessary on account of the technological
and other changes that are inevitable in the country
and the world. It would also afford an opportunity to
different stakeholders to express their views in the
light of the changes that take place with time.
Full
text of the policy
Foreign Direct Investment Policy
The present policy on FDI in the Petroleum & Natural
Gas sector vide Press Note No 5 (2008) permits FDI up
to 100% under the automatic route in all activities
other than refining and including market study and formulation,
investment/financing, setting up infrastructure for
marketing in Petroleum and Natural Gas Sector subject
to sectoral policy.
In Refining, FDI up to 49% in case of Public Sector
Undertakings, without involving any divestment or dilution
of domestic equity in existing public sector undertakings
through Foreign Investment Promotion Board (FIPB) and
FDI up to 100% is permitted in case of Private companies
under Automatic route subject to sectoral policy.
Key Players
- Indian Oil
- Reliance
- Bharat Petroleum
- HP
- ONGC
- BP
- BG Group
- Gaz de France
- Chevron
Foreign Direct Investment (FDI)
Policy
To view FDI policy for oil and gas sector Click here
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