Bangalore: The government would come out with a separate Bill outlining an auto fuel policy based on the recommendations of an expert committee, Minister of Petroleum and Natural Gas Ram Naik said on June 25.

Naik said that the committee headed by director general of council of Scientific and Industrial Research, R A Mashelkar, would submit its final report by this month-end.

The government, he said, would promptly examine the report and come out with a Bill outlining an auto fuel policy, which would be in tune with judicial pronouncements in this regard, and "what is desirable, what is possible and what should be done".

He said that Bharat Stage II norms, which have already been introduced in four mega cities last year, would also be introduced in Bangalore, Hyderabad and Ahmedabad latest by 2003.

Naik, who was inaugurating a "Question-Answer Session on Hydro-processing", said introduction of Bharat Stage II norms in the entire country would lead to an additional investment of Rs 25,000 crore in the refineries.

Euro III equivalent emission norms for all categories of vehicles would be introduced in seven mega cities including Bangalore from April 1, 2005 and for the entire country by 2010, the Minister said.

Naik said that the government has taken a policy decision to blend five per cent of ethanol in petrol all over the country.

Three pilot projects for use of five per cent ethanol in petrol which have been operational in Uttar Pradesh and Maharashtra have indicated that such usage be encouraged and even percentage of ethanol can be further increased, he said.

Stating that there is also a proposal to develop usage of ethanol in diesel, Naik said that Rs 7.76 crore fund have been allocated by the Ministry for research in this regard.

He said that in the first phase, eight sugarcane growing states of Uttar Pradesh, Punjab, Haryana, Gujarath, Maharashtra, Andhra Pradesh, Tamil Nadu and Karnataka would be covered in the matter of blending ethanol in petrol.

In the second phase when the five per cent blending of ethanol in petrol would be made mandatory, it would be extended to all over the country and percentage would be taken up to 10 per cent, the minister said.

Naik expressed the hope that many of the 140 liquid petroleum gas (LPG) centres planned in the country would be commissioned this year.

The two-day event has been jointly organised by the Centre for High Technology and Bharat Petroleum Corporation Limited.

PTI