'CNG use will pare health expense'

Using compressed natural gas (CNG) instead of conventional fuels like petrol and diesel will result in a saving of at least Rs 100 crore in healthcare expenditure every year, a Confederation of Indian Industry(CII) report on natural gas says. The report has been submitted to the state government.

With over three-fourths of all air pollution caused by vehicular emissions, the state spends over Rs 100 crore a year on diseases caused by air pollution.

The study - 'Sales Tax on Natural Gas in Gujarat', prepared by Ravindra Dholakia of the Indian Institute of Management for the Gujarat Council of CII, says that in Ahmedabad alone, the state would save at least Rs 63 crore by replacing petrol, diesel and coal with CNG and gas.

This is based on the assumption that the government spends around 50 per cent of all healthcare expenditure in the state.

Levels of suspended particulate matter (SPM) in Ahmedabad city have been extremely high. The city recorded SPM levels between 400 and 600 micrograms per metre cube, while the national ambient air quality standard requires SPM to be below 200 microgrammes per metre cube.

The report says: "While the substitution of coal by gas will certainly make a significant contribution, the major thrust in this direction must come from CNG".

The share of automobiles in Ahmedabad's air pollution is about 74 per cent and emission levels will reduce by 98 per cent when CNG replaces diesel and petrol.

Of the total vehicles registered by the Ahmedabad Regional Transport Authority, 71 per cent are two-wheelers and hence only 29 per cent can, at present, be made available for conversion to CNG. Three and four-wheelers contribute to 75 per cent of the total air pollution.

"The reduction of sales tax from 20 per cent to 12 per cent, and subsequent government efforts to promote CNG run vehicles, will not only mean more revenue from gas (as usage will shoot up) but also savings on health expenditure.

"This is what the CII report has attempted to project," said Ajit Kapadia, chairman of the CII Gujarat Energy Council.

The report also states that substitution of coal by gas in power generation units in Gujarat will result in sizable earnings for the Gujarat Electricity Board (GEB) and industries in general.

According to the Gujarat Pollution Control Board (GPCB), industries and the GEB have invested around Rs 3,200 crore and Rs 140 crore, respectively, in controlling air pollution.

Assuming a ten to 11 per cent growth of industries, including power generation units in the state, the savings on abatement cost per annum will be a minimum of Rs 320 crore a year for industries and Rs 14 crore for the GEB.