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August
11, 2001
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Rational
Expectations
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The
great Bhure Lal hijack
MOST
of the countrys press, including this newspaper, have gone
to town blaming Petroleum Minister Ram Naik and Delhi Chief Minister
Sheila Dikshit for bungling over the use of compressed natural gas
(CNG) for commercial vehicles several mile-long queues, and
waits for upwards of 12 hours, are routine for Delhis buses
and scooter-taxi drivers. Much of the anger is justified, since
the petroleum ministry clearly never made arrangements for adequate
CNG supplies. But far more to blame is the Bhure Lal Committee (BLC)
which has been the guiding force behind the Supreme Court rulings.
The fact that the Court didnt fully appreciate the contradictions
in the situation only added to the disaster. Some of the glaring
contradictions:
Thanks
to the submissions of the BLC, the Court came out with a ruling
in 1999 on pollution norms for vehicles plying in the capital and,
as a result of this, refineries were directed to provide diesel
with a 0.25 per cent sulphur content for the entire country, and
0.05 per cent for the National Capital Region. Public sector refineries
spent a whopping Rs 10,000 crore to bring down sulphur levels in
diesel and benzene in petrol.
So,
logically, when commercial vehicles were asked to clean fuels,
low sulphur diesel should have been one of these. On March 26, 2001,
the ministry asked the Court why diesel could not be used in addition
to CNG. The Court asked BLC to look into the matter. The committee
then did some amazing pyrotechnics. It said hydrocarbon
based fuels such as petrol and diesel are inherently polluting,
but among these only CNG, LPG and Propane are environmentally
acceptable. It said diesel could be used, but only if it had
a sulphur content of 0.001. This, it said is not available
in the country and will have to be imported; given the
problems with CNG, it recommended buses be allowed to ply on diesel
for three more months, but be punitively fined. Great, but BLC didnt
mention certain things.
Diesel
with 0.001 per cent sulphur is not used anywhere in the world except
for a handful of countries like Sweden (the US and Japan use diesel
with 0.05 per cent sulphur); such diesel is not traded anywhere
in the world. BLC also didnt tell the court that none of the
vehicle manufacturers are in a position to convert/retrofit all
of Delhis 13,000 commercial buses to CNG by December (only
2,570 buses run on CNG today).
Guided
by various BLC submissions, the Court ruled on March 26 that low
sulphur diesel was not a clean fuel, and ruled that
all commercial vehicles would have to run on CNG. Thats when
the great rush to convert scooters-taxis to CNG began by
the way, half of Delhis CNG demand today, and the huge queues,
come from scooters-taxis. In other words, the rush and chaos on
the roads today is a direct result of BLC informing the court that
0.05 per cent sulphur-diesel was not clean. Ironically,
as part of the Euro-I and Euro-II rulings, the same Court had allowed
registration of taxis-scooters running on this diesel till just
the day before thats on March 25. The Court ruling
that commercial vehicles should run on CNG is also curious since
it had itself said low benzene petrol was a clean fuel.
It
gets worse. A few days after the Court said scooters and taxis would
also have to use CNG, the ministry called Bhure Lal to explain there
was no way it could meet the capitals CNG needs if scooters
and taxis were also to run on CNG. On April 26, this was given in
writing to the Court which heard the matter the next day, but referred
it to BLC! BLC submitted its recommendations only in July, and the
Court hasnt taken it up since.
After
the original Bhure Lal recommendations two years ago, there was
a rush of applications from firms who wanted to convert diesel buses
to CNG. Well guess what, BLC now says no conversions should be done,
instead brand-new engines should be purchased apart from
the fact it means great business for the Tatas and the Hindujas,
the logic is quaint. If these convertors used poor technology or
didnt have stringent standards, shouldnt this have been
examined before plunging the capital into chaos?
BLC
was also asked to examine the issue of standards for CNG vehicles,
perhaps in view of the accidents with them. It now said the inspectors
of the Department of Transport lacked expertise in the
field of CNG vehicles and so the job of inspecting every
converted bus for its fuel storage systems and engine should be
entrusted to Gas Authority of India and Indraprastha Gas Limited
who are having requisite expertise. Again, the lack
of expertise to certify vehicles is something that should have been
gone into earlier. In any case, GAIL is a gas supplier and has no
expertise in certifying engines so thats another fast
one pulled by BLC.
There
is, undoubtedly, every reason for Delhis citizens to be mad
with various branches of the government for not providing
enough CNG, for not laying down standards for CNG cylinders, or
inspecting buses properly, and a lot more. But remember that a greater
share of the blame lies elsewhere.
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