The parallel liquified petroleum gas (LPG) industry has urged the Union surface transport ministry to amend the Motor Vehicles Act to enable conversion of heavy diesel vehicles such as buses into LPG vehicles.
The recent amendment to the Motor Vehicles Act permits conversion of heavy diesel vehicles into compressed natural gas (CNG) vehicles and petrol-driven four wheelers into LPG-driven vehicles. But it does not provide for conversion of diesel vehicles into LPG vehicles.
Recently, the Andhra Pradesh State Road Transport Corporation (APSRTC) wanted to convert about 10 of their buses into LPG fuel vehicles on an experimental basis and SHV Energy India (Private) Ltd, a fully owned subsidiary of multinational SHV, had indicated interest in providing the facility. But the project had to be put on hold because of the flaw in the law.
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According to SHV Energy India chief operating officer, Ajay Kumar, while LPG as an alternative automobile fuel for the diesel segment could be provided anywhere in the country, the use of CNG as auto fuel was restricted to only those places in India where the gas pipeline had been laid.
Also, LPG is a much cleaner auto fuel compared with CNG and worldwide the number of vehicles run on LPG was ten times more than those operated on CNG.
"The Union surface transport ministry is sympathetic to our representation and we hope the necessary amendment would be made at the earliest," Ajay Kumar said.
On the use of LPG as an auto fuel for four-wheelers, Ajay Kumar said the necessary specifications for the tank to hold the gas had been notified while the specifications for the regulators were now being finalised. "Once this is completed, LPG can be used as an auto fuel for four-wheelers," he said.
Ajay Kumar did not agree that once the administered pricing mechanism for petroleum products is dismantled on March 31, 2002, and market forces dictate the prices of end-products, the current difference in consumer price between petrol and LPG may become marginal and as such LPG may not be a very attractive alternative to petrol price-wise.
However, he agreed that there was little price advantage in converting a diesel vehicle into an LPG vehicle, especially when the conversion kit cost around Rs 3 lakh at present prices. "But we should not lose sight of the environmental advantages of LPG as a clean auto fuel," he said.