TOUGH ROLL-OUT

Business Today - - THE BUZZ - – Anilesh S. Ma­ha­jan

Oil re­fin­ers in In­dia have their work cut out for them if they are to meet the pe­tro­leum min­is­ter’s dead­line to pro­vide BS VI grade petrol and diesel by April 2018. While they may have been well on track with the ear­lier an­nounced dead­line of the year 2020, re­fin­ers are strug­gling to keep to the new dead­line. With the govern­ment ex­pect­ing sup­plies of the newer fuel across mul­ti­ple cities af­ter the Delhi-NCR soft launch, re­fin­ers will need in­vest­ment to the tune of 55,000 crore to be utilised in a sin­gle fis­cal where ear­lier it could have been spread over three. BS VI will re­duce sul­phur con­tent in fuel from 50 PPM to 10 PPM. It took oil re­fin­ers nearly four years to up­grade oil pro­duc­tion from BS III to BS IV, and nearly seven years to com­plete the roll-out, which cul­mi­nated only in April this year. Of­fi­cials in the re­fin­ery sec­tor are con­fi­dent that they can meet the tar­get but that re­mains to be seen.

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