7.1.16

From BS-IV to BS-VI emission norms....


The government has decided to leapfrog from BS-IV to BS-VI emission norms and fuels by 2020 in a bid to reduce vehicular pollution across the country , notwithstanding the auto industry's reservations over preparedness.
Simultaneously , stricter emission norms in line with European norms for two wheelers, which make up 75% of vehicles registered in the country and considered a major source of vehicular pollution, are also being considered.
The decision to skip the BS-V stage was taken in line with the oil ministry's stand and assurance that it was capable of providing BS-VI fuels throughout the country by 2020.
With BS-VI norms, equivalent to Euro-VI, India will join the league of developed countries such as the US, Japan and the European Union. All new models would have to be BS-VI compliant from 2020, while a year's grace period will be provided to the existing models for complying to the new emission standard. At present, only 50 cities in India get BS-IV fuel, while the rest still use BS-III. Sources said, the leapfrogging would push up prices of all makes of cars by Rs 20,000-30,000.
A committee of secretaries from pertinent ministries would decide the specifications and other parameters for graduating to BS-VI in two weeks.
Announcing the decision, road transport minister Nitin Gadkari said the Saumitra Chaudhuri panel, set up by the erstwhile Planning Commission, had recommended gradual shifting from BS-IV to BS-V by 2020 and finally to BS-VI by 2024.The transport ministry had proposed to advance implementation of BS-VI to 2021.
An oil ministry statement said state refiners would invest Rs 28,750 crore to upgrade their refineries for producing clean fuels.
Responding to the reservations expressed by the automobile manufacturers, Gadkari said several players are already producing vehicles that are compliant to Euro-VI and are exporting them. He added that government would help the industry since they now need to do more, but they must contribute to reducing air pollution. Motown is readying for a double-bill surgery to dramatically clean up car tailpipe fumes. In five years, both PM 2.5 (particulate matter) and NOX emissions will come down by 90% and 84% respectively . But this clean drive will come with a price tag both for petrol as well as diesel vehicles.
Come 2021, you'll have to fork out anywhere between Rs 30,000-100,000 more for a new car or an SUV as the automobile industry migrates directly to Bharat Stage VI (BS-VI) or Euro 6 emission norms from the current BS-III and BS-IV . The resultant technology cost will be to the tune of Rs 50,000 crore. Add to that the roughly Rs 80,000 crore that the oil industry is in the process of pumping into refineries to upgrade them.
And here's the rub -the smaller and cheaper the model, the steeper the price hike.For an entry-level car, it could be as high as 15-25%. But if you're a luxury car buyer, it could be very little as luxe marques already come loaded with the newly-mandated safety equipment and mostly are already BS-V or BS-VI-compliant. Moving from BS-III to BS-VI will reduce NOX by 84% and PM 2.5 by 90% .The first causes problems to unborn babies, the second causes lung cancer. But existing BS-III and BS-IV vehicles will continue to ply .
According to auto industry sources, the move from BS-IV or Euro 4 to Euro 6 will require significant investment in technologies like Diesel Particle Filter (DPF) and Selective Catalytic Reduction (SCR), which will increase the cost of a small diesel car SUV by anything between Rs 65,000-1 lakh. Currently , diesel engines require a catalytic converter to be BS-IV-compliant. The move to BS-V will require both engine calibration as well as installation of the DPF . To move to BS-VI will require more engine calibration as well as DPF and SCR. At each level, the cost will go up by around Rs 50,000 for end customer.
Petrol engines, on the other hand, will simply require ECU changes for both emission levels, hence the mark-up will be in the region of Rs 30,000-70,000. 

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