Decision to form this committee was taken in a meeting held by the Prime Minister on August 30, 2001. This committee was formed under the chairmanship of R A Mashelkar, director general, Council of Scientific and Industrial Research (CSIR), New Delhi to recommend an auto fuel policy for the country together with a road map for its implementation.

The committee was set up on September 13, 2001 by the ministry of petroleum and natural gas. The committee had representatives from energy sector, automobile sector, public finance, and management. It had official representatives from the ministries of – petroleum and natural gas, environment and forests, Central pollution control board, Non conventional energy sources, Road transport and highways, heavy industry, consumer affairs, agriculture.

Terms of reference:

1. "Recommend an Auto Fuel Policy for the country, including major cities and device a roadmap for its implementation taking into account the vehicular emissions norms recommended by the inter-ministerial Task force headed by the chairman CPCB and the on going work on ethanol blending of gasoline and use of bio fuels in transportation by the groups set up by the ministry of petroleum and natural gas and the ministry of non conventional energy sources."
2. "Recommend suitable auto fuels policy for the country and their specifications considering the following:
1. availability and logistics of fuel supplies;
2. The processing economics of auto fuels; and
3. The possibilities of multi-fuel use in different categories of vehicles"
3. "Recommend the terms of the attributes of the automobile technology, fuel mixes relevant to their requirements, price environments, etc for ensuring minimisation of the social cost of meeting a given level of environmental quality and vehicular emissions norms."
4. "To recommend fiscal measures including removing pricing distortions, fiscal interventions, use of market based instruments etc to achieve (3) above."
5. "Recommend institutional means of certification of different technology/fuel mixes as also monitoring and enforcement measures."
6. "Consider and advise on any other issue(s) incidental to the above."

Air quality and vehicular emissions norms
Contribution of vehicles to the ambient air quality
Motor vehicle technologies
Next stage emissions norms for 2&3 wheelers
Auto fuel quality
Economic and financial issues
Reduction emissions from in-use vehicles
Costs of public health due to air and vehicular pollution Inspection and maintenance programme, emissions warranty, and fuel quality

2. Status of actions taken so far to improve emissions and fuel quality in Delhi and Mamba under the Supreme Court and High Court directions.

3. Existing studies and reports

4. Roadmap recommended by the Inter ministerial task force headed by the chairman CPCB

5. The on-going work on ethanol blending in petrol

6.The methodology followed in European Union for Auto oil programme I&II

7. Presentations made to the committee by the various stakeholders

8. Other comments

Studies commissioned by the committee (findings of these studies were the basis of the recommendations).

1. Urban road traffic and air pollution in major cities (Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Agra & kanpur): Central Road Research Institute (CRRI), New Delhi
2. Ambient Air quality and source apportionment of particulate matter (PM10) at Kanpur city: National environment Engineering Research institute (NEERI), Nagpur.
3. An appraisal of health impact of air pollution with reference to vehicular emissions. Industrial Toxicology Research centre (ITRC), Lucknow
4. Incentive systems for replacing old vehicles: Its feasibility and adequacy of incentives: National Institute of Public Finance and Policy, New Delhi (NIPFP)
5. New suggested structure of vehicle road tax referring to progressivity in road tax linked with age of vehicles: National Institute of Public Finance and Policy, New Delhi (NIPFP).
6. Savings on health cost from implementation of euro norms in India: National Institute of Public Finance and Policy, New Delhi (NIPFP).

Recommendations

• Bharat stage II norms from April 1, 2005
• Euro III equivalent norms from April from April 1, 2010

Bharat stage II norms

• Delhi, Mumbai, Kolkata and Chennai: Already introduced 2000-01
• Bangalore, Hyderabad, Ahmedabad, pune, Surat, Kanpur, and Agra from April 1, 2003

Euro III equivalent norms for all vehicles from April 1, 2005

Euro IV equivalent emissions norms for all vehicles from April 1, 2010

Roadmap for Two/three-wheelers

Entire country

Bharat stage II norms from April 1, 2005

Bharat stage III norms preferably from 2008 but not later than April 1 2010

2. Air quality data and research development
Provide funding support for strengthening of the network and the supervision/monitoring of data collection
Surveys and studies on sources of pollution and source apportionment be initiated in polluted cities.

3. Health effects of air pollution

A database linking air pollution/vehicular emissions related diseases and air pollution levels be crated for planning.

Medical community and other concerned agencies to play an active role in prevention and control of air pollution and adverse health effects.

Organise well-designed multicentric epidemiological studies. Set up a core group of experts from ICMR, CPCB, CSIR and MOEF to steer such studies.

4. Vehicle technology

Expeditious implementation of the proposed auto fuel policy in the report
Declaration of fuel economy standards by automobile manufacturers should be made mandatory.

Liquid fuels of specified quality through out the country.
Alternative auto fuels along with liquid fuels in cities with high vehicular pollution

At present stage of development of the infrastructure the committee considers it inadvisable to recommend that city public transport use only gaseous or other non-conventional fuels.

6. Alternative auto fuels: CNG and LPG

Use of these fuels should be encouraged in cities with high levels of vehicular emissions.
For safety reasons only fixed fuel tanks be allowed.

A comprehensive programme of policy support, R&D support and other measures for zero emissions vehicles should be drawn up.

Encourage bio-fuels with policy support for R&D and fiscal incentives

Strengthen certification system for alternative fuels for safety, reliability and durability.

A one time budgetary support to the refineries in the north-east for upgradation of fuel quality

Lower custom duty on imported capital goods etc needed for fuel quality improvements and automobile technology, including alternative fuels.

Lower excise duty on indigenously manufactured goods for fuel quality improvement

100 percent depreciation on plant and machinery put up for upgradation of product quality and automobile technology including alternative fuels.

Lower customs duty on the imports of CNG and LPG kits, dispensing equipments

Lower duties and taxes on gaseous fuels vis a vis liquid fuels.

Provide fiscal incentives to both manufacturers and use of electric vehicles

Entire country

New PUC checking system for all categories of vehicles by April 1, 2005

Inspection and maintenance system for categories of vehicles by April 1, 2010

Performance checking system of catalytic converters and conversion kits by April 1, 2007

Augmentation of city public transport by April 1, 2005

For National capital territory of Delhi

New PUC checking system for all categories of vehicles by October 1, 2003

Inspection and maintenance system for categories of vehicles by April 1, 2005

Performance checking system of catalytic converters and conversion kits by October 1, 2004

New PUC checking system for all categories of vehicles by April 1, 2004

Inspection and maintenance system for categories of vehicles by April 1, 2006

Performance checking system of catalytic converters and conversion kits by April 1, 2005

Finalise plans for augmentation of city public transport by April 1, 2004

Institutional mechanism

The existing authorities responsible for enforcing automobile emissions norms and fuel quality standards should be brought under a single new authority – National Automobile pollution and Fuel Authority