The plea of the Government that CNG is in short supply, and that it is unable to supply adequate quantity is incorrect, and this is clearly a deliberate attempt to frustrate the orders passed by this Court. Particulars filed in Court show that as of today no CNG is being imported. The indigenous produce is far in excess of what is supplied to the transport sector. It is only a small fraction of the CNG produced in India which is earmarked for non-industrial use. Overwhelming quantity is allocated to industries, including the power sector.

That there is no shortage of CNG is also evident from the fact that even during the dependency of these proceedings, while on the one hand it was being represented to this Court and the Mashelkar Committee that CNG was in short supply, there was an increase in the allocation of the CNG to industries. Even when CNG was not being supplied to the Pragati Power Station in Delhi, as the same has not been commissioned, the CNG earmarked for the power unit instead of being allocated to the transport sector, was iverted to the industries in the neighborhood of Delhi.

If there is a short supply of an essential commodity, then the priority must be of public health, as opposed to the health of the balance sheet of a private company. To enable industries to cut their losses, or make more profit at the cost of public health, is not a sign of good governance, and this is contrary to the constitutional mandate of Articles 39(e), 47 and 48A.

While the industries get natural gas at the rate of about Rs. 3.55 per KG, a commercial vehicle owner in Delhi has to pay about Rs. 13.11 per KG which is four times more than what the industry pays. It was contended by Mr. Rohtagi that natural gas is supplied to the IGL at the same price at which it is supplied to the industries. This argument conveniently overlooks the fact that IGL is a government company and, therefore, the sale price which the Government and its company gets on sale of CNG in the transport sector is at least four times more than what it gets from the
industries.

It is indeed surprising that, ostensibly, with a view to provide more CNG to the transport sector in Delhi, the allotment of CNG to Maruti Udyog Limited (MUL) has been sought to be cancelled. Normally, it would have been surprising that if there is shortage of an essential commodity, then the supply or the sale to the public sector undertaking would be cut, but here, not only is the supply to the PSU being cut, but also at the same time, supply to at least two big business houses has been increased.

It would, under the circumstances, not be incorrect to presume that the proposal to cut supply of CNG to MUL was for some oblique purpose. Why should the Government, which is proposing to dis-invest its share in MUL, take the action of cutting supply of CNG, which would result in increasing its expenses and decreasing its value? It is not as if there has been a prorata cut of all the industrial units in and around Delhi, including MUL, with a view to increase supply to the transport sector. The proposed cut appears to be nothing more than an attempt to punish MUL because its Managing Director is a member of the Bhure Lal Committee, which had recommended CNG and, therefore, the Managing Director and this company must suffer. It is clear that there is desire to benefit private industries at the cost of public health and the public exchequer. A major portion of the CNG goes to industries, and the government and its undertakings get less than what it would realise from supplying CNG to the transport sector. Such economics is baffling, to say the least.

Not only is there no shortage of CNG as far as the transport sector is concerned, but even if there be such a shortage, if crude oil can be imported and supplied to the refineries for manufacture of petrol and diesel, there is no reason why CNG, if needed, cannot be imported so as it ensures less pollution.

During the course of arguments, literature was filed in Court giving data from cities all over the world which co-relates increased air pollution with increase in cardiovascular and respiratory diseases and also shows the carcinogenic nature of Respirable Particulate Matter (RSPM) - PM10 (i.e. matter less than 10 microns in size). The scientific studies indicate that air pollution leads to considerable levels of mortality and morbidity. Fine particulate matter, or respirable particulate matter (RSPM) PM10 (i.e. matter less than 10 microns in size) - is particularly dangerous.

The Journal of American Medical Association (JAMA) has published in its recent issue the findings of a study involving over 500,000 people, conducted over 16 years, in different cities of the US. The researchers find that fine particle related pollution leads to lung cancer and cardiopulmonary mortality. Their research indicates that with an increase of every 10 microgramme per cum (mg/cum) of fine particles, the risk of lung cancer increases by 8 per cent.

The USEPA has mandated that annual average levels of PM 2.5 particles in air should not exceed 15 mg/cum. The Indian annual national average standard for PM10 is 60 mg/cum, but most cities, including Delhi register PM10 levels above 150-200 mg/cum on an annual basis.

A study conducted with regard to children in Bangalore show that the incidents of asthma in percentage of children rose from 9% in 1979 to 29.5% in 1999, thereby corresponding increase in vehicles from 1.46 lacs in 1979 to 12.23 lacs in 1999. Similarly, a study by the Chittaranjan Cancer Institute and Environmental Biology Laboratory of the Department of Zoology of Kolkata University done between November, 1997, and May, 1999, found that about 43% of the children in Kolkata are suffering from respiratory disorders compared to 14% among the rural children. Alarmingly 94-96% of the children were found producing sputum which would usually be reflective of habitual smokers though only 5.5% of the children were found to be smoking and that too occasional. As per the study reflected in the Indian Journal of Medical Research July, 2000, the culprit for the aforesaid was pollution in the ambient air.

According to an estimate by the World Bank study using 1992 data, the annual health cost to India was up to about Rs. 5,550 crores due to ambient air pollution. Out of this, the health cost of air pollution in Delhi alone was found to be about Rs. 1000 crores.

The increase in respiratory diseases specially amongst the children should normally be a cause of concern for any responsible government. The precautionary principle enshrined in the concept of sustainable development would have expected the government and the health authorities to take appropriate action and arrest the air pollution. However, children do not agitate or hold rallies and, therefore, their sound is not heard and the only concern of the Government now appears to be is to protect the financial health of the polluters, including the oil companies who by present international desirable standards produce low quality petrol and diesel at the cost of public health.

The statistics show that the continuing air pollution is having a more devastating effect on the people, than what was caused by the Bhopal gas tragedy. In that case, the nation, including the Union of India, was rightly agitated and sought action and compensation from the multinational company, who was held to be responsible for the same. Here, in the case of CNG, the shoe is on the other foot because the government is not facilitating measures for clean air and water including the supply of CNG or an other clean unadulterated fuel. It is due to the lack of proper concern on the part of the governmental authorities that people are suffering from respiratory and other diseases. The Bhopal gas tragedy was a one time event which, hopefully, will not be repeated, but here, with not enough concern or action being undertaken by the Union of India, far greater tragedies in the form of degradation of public health are taking place every day.

Under these circumstances, it becomes the duty of this Court to direct such steps being taken are necessary for cleaning the air so that the future generations do not suffer from ill-health.

As in the past, it is imperative, while reiterating the order of 28th July, 1998, to issue further directions in an attempt to improve public health by decreasing air pollution. We are conscious of the fact that vehicular pollution is only one of the cases of air pollution, but statistics show that, at least in the metropolitan towns, this is the major source of pollution. In the September, 2001 issue of 'PARIVESH' a magazine published by the Central Pollution Control Board relating to air pollution and human health, dealing with diesel exhaust particles and its health effects, it was stated at page 34 of the said issue as follows:

From the aforesaid extracts from the publication of the Central Pollution Control Board, it is evident that there was need to control air pollution, and one of the measures was to reduce the use of diesel. It was with this object in view that the Bhure Lal Committee recommended the use of CNG which was accepted by all the parties including the Union of India when orders were passed to that effect in July, 1998.

It was submitted on behalf of the Union of India that diesel and CNG are not materially different in the matter of air pollution and instead of 100% switchover to CNG if there was a mix of CNG and diesel buses of equal proportion the difference would only be of 2% in the pollution levels.

We do not find any valid basis for the aforesaid submission. Data from the Automotive Research Association of India, Pune shows that the pollution potential of emissions from CNG is far less than even the Euro-IV standards. This is evident from the following table compiled on the basis of the said data.

Comparison of CNG certified test data from automotive research association of India (ARAI) with emissions norms for buses

With the emissions from the CNG vehicles being more than comparable with the EURO-IV standards, the contention of the Union of India that a mix of diesel buses and CNG buses would make a difference of only 2% in the pollution levels is patently untenable. In the case of particulates, current CNG vehicles are 15 times better than Euro-II diesel vehicles (with 500 ppm sulphur) and only Euro IV diesel vehicles are comparable to CNG vehicles. In fact, the certificate issued by the Automotive Research Association of India (ARAI) to the bus manufacturers says that particulate emissions were negligible and could not be measured. The aforesaid analysis emphasize the need for change to non-liquid fuel like CNG or LPG so as to improve the air quality in this country and not merely of Delhi. Such change-over may perhaps obviate the need to manufacture vehicles meeting Euro III or Euro IV standards.

It was as a result of the various orders passed by this Court that the air pollution level in the city has been stabilised. In 2000, the levels of annual average levels of RSPM declined to 186 mg/cum from 222 mg/cum. This is no small achievement as the city continues to add over 2,00,000 vehicles each year and its total vehicular fleet is larger than that of Kolkata, Mumbai and Chennai put together. But even with these efforts, its RSPM pollution remains roughly 3 times above the national standard for annual average concentration of RSPM mandated under the Air Act, 1981.

It was repeatedly contended on behalf of the Union of India that no other city in the world had introduced CNG buses at the scale directed by this Court. Both the State Government and the Union of India had urged that the CNG technology was still evolving and experimental. It is no doubt true that most of the cities of the industrialised world do not have large numbers of CNG buses, but the share of natural gas buses, needed to meet the stringent norms in the future, are growing. The data filed indicates that in the United States, CNG buses account for 18 per cent of the current bus orders and 28 per cent of the potential orders. Under pressure to clean up the air because of the approaching Olympic Games in 2004, Beijing has resorted to an alternative fuel strategy. Latest figures from Beijing indicates that there will be 18,000 buses fuelled by CNG, LPG and electricity in that city. By 1999, Beijing had 1300 CNG buses and the numbers are growing rapidly to meet the Olympic deadline. Similarly, the Ministry of Environment in South Korea - partly to meet the targets in time for 2002 World Cup Soccer aims to induct 20,000 natural gas buses in its fleet and already 3000 such buses are plying. [Source: Moon-Soo Ahn 2000, Korean CNG bus programme The environmental Benefits, Ministry of Environment, Korea, Automotive Pollution Control Division, mimeo.]

From the aforesaid, it is clear that the alternative fuel of CNG, LPG and electricity is a preferred technology which critically polluted cities like Delhi need as a leapfrogging technological option.

This Court has shown concern about the reports relating to adulteration of petroleum products in Delhi. A report was called for from the Bhure Lal Committee. The said report confirms that adulteration is taking place. The sample failure rate in the study which has been carried out was 26 per cent. The report also indicates that the existing fuel specification standards and the tests specified are inadequate for detecting adulteration. Two dummy samples - one with 10 per cent and the other with 20 per cent kerosene were sent to the Fuel Testing Laboratory, Noida. The result of the test report of the test laboratory showed that the product met the specification of HSD. However, a third sample with 15 per cent contamination was declared as not meeting the HSD specification. This shows that reliance cannot be placed on such laboratories which puts in great doubt the entire mechanism for detection of adulteration. Considering the quantity of kerosene which is supplied to Delhi it is not improbable that this is one of the ingredients used, along with naphtha etc. for adulterating the fuel supplied to the customer. Under the circumstances, merely lowering the sulphur and the benzene content in diesel and petrol respectively will have a little effect unless and until the oil companies can guaranty that the fuel which was sold from the dispensing stations is pure and unadulterated. In fact, there is one public sector undertaking which advertises its petroleum products as "pure for sure". It guarantees hat the fuel which can be obtained from its dispensing stations is unadulterated. This by itself clearly indicates acknowledgement by the petroleum industry that adulteration in not a small measure is taking place and, therefore, the need to advertise the purity of the products sold by the Bharat Petroleum. It has been alleged, and there is strong basis for this, that as a result of adulteration, large amounts of illegal gains and profits are being made. There are various players in this racket. It is not surprising, therefore, that there is stiff resistance to the implementation of the orders of this Court for switch-over to gas which cannot be adulterated and will undoubtedly cause financial loss to the members of the unholy alliance of adulterator.

As per the available information there seems to be no apparent shortage of gas. The supply of gas from the South Bassein gas fields has increased over the past some years, from 38 mmscmd to 41 mmscmd. Major investment has already been sanctioned for expansion of infrastructure to supply natural gas as well as regassified LNG to northern India.

The Union of India has argued that breakdown in the pipeline would lead to disruption in supply to the city and could paralyse the transport system which would be solely dependent on CNG. However, available information suggests that the possibility of the pipeline breaking down is remote. Furthermore, the pipeline itself stores up to 3 months of gas supply needed for Delhi.

The Union Government has to allocate more gas to Delhi to implement the order of this Court. In January, 2002, the Union Government has roughly doubled its earlier allocation to Delhi's vehicular fleet. But even this increased allocation - by diverting gas from a single user, Maruti Udyog Limited - will be inadequate for implementing the Court's order.

To meet the needs of current and projected vehicles in the city - the city requires a mere 4.8 per cent of the current supply of gas by the HBJ pipeline. The production of gas in the South Bassein gas fields has also increased over the last 2-3 years. But the increased production has been allocated to industries, instead of meeting the needs of vehicles arising out of this Court's orders. According to available information:

As per the latest figures available, there are 3,727 CNG buses on the road. The additional number of buses, which have to be phased out are 6,338. Once this is done, the total number of CNG buses on the road will be 10,065.

In the I.A. filed on behalf of the bus manufacturers, it is stated that 1500 chassis which had been ordered are ready for delivery but the persons who placed orders have not taken the delivery. Therefore, at least 1500 buses can be replaced immediately. As per the affidavit filed by the manufacturers, between Ashok Leyland and TELCO, they have an installed capacity of 1,100 buses per month. Assuming production of around 70 per cent of the installed capacity, it would be safe to proceed on the footing that between the two of them they can provide 800 buses a month. If all the bus operators chose to buy new buses then @ 800 buses per month, thee entire fleet of remaining 4838 buses, in addition to the 1500 chassis ready for delivery, can be phased out is not more than 7 or 8 months.

The request of the government for phasing out 200 buses a month appears to be based on some imaginary shortage in the availability of gas. There is no credible material placed before the Court to show that the distribution of gas is consistent with the principle of sustainable development. Conferring economic advantage upon industry by making available cheap gas in preference to the need for supplying gas for environmental reason is inconsistent with the settled Constitutional position.

Even though the time for phasing out diesel buses had expired but in view of the situation created by the Government of not cooperating or complying with the Courts order, a different formula has to be worked out so as to cause as little inconvenience to the traveling public as possible, while at the same time punishing the wrong doer. Directions are, therefore, to be issued regarding the lifting of 1500 buses plus phasing out of 800 buses per month. The permits to be given are to be time bound and the continued operation of the diesel buses till they are replaced would require them to pay Rs. 500/- per bus per day for 30 days of operation and thereafter Rs. 1,000/- per day and the same is to be deposited with the Director of Transport, Delhi.

Before concluding on this aspect, we may notice that on a query raised by the Court, the Union of India has informed the LPG has also been permitted to be used as fuel by the transport sector. This can and should be an alternate fuel to CNG available to the users as LPG is, at present, environmentally acceptable. It is for the Government to take steps so as to increase it's supply. We may here note that there are, as per CPCB data, at least nine other polluted cities in India where the air quality is critical. These cities are Agra, Lucknow, Jharia, Kanpur, Varanasi, Faridabad, Patna, Jodhpur and Pune. But there appears to be no effective action plan to address the problem of these cities and the Mashelkar Report ensures their suffering for quite some time. If no immediate action is taken, then it may become necessary for some orders being passed so as to bring relief to the residents of those cities.

Lack of adequate supply of CNG has been a cause of concern and has been referred to in the various orders passed by this Court from time to time. In the absence of proper response from the governmental authorities, there is no alternative but to issue the following directions: