Oil PSUs will require to invest Rs 28,750 cr to make BS-VI fuels

Public sector refineries will have to invest about Rs 28,750 crore for producing BS-VI fuels as the government has decided to advance the date of implementation of Euro-VI standards to April 1, 2020. “Oil PSUs are expected to invest about Rs 28,750 crore for switching over to BS-VI auto fuels. Led by IOCL, the Indian petroleum industry is gearing up for full compliance on this direction,” stated Sanjiv Singh, director (refineries), Indian Oil Corporation Ltd (IOCL).
 
Keeping in view the environmental impact, rising pollution levels and consequent health hazards due to vehicular pollution, the government has decided that the country will be switching over to BS-VI norms of auto emissions and commensurate quality auto fuels (MS and HSD), directly from BS-IV norms with effect from April 1, 2020. “India’s leading oil major Indian Oil is making all-out efforts to meet the deadline,” informed Sanjiv Singh.
   
BS-IV and BS-VI auto fuels are far lower in sulphur (S) content compared to BS-III levels. In diesel (HSD), ‘S’ spec gets reduced from 350 ppm in BS-III to 50 ppm in BS-IV, and finally to only 10 ppm in BS-VI. Similarly in gasoline (MS), ‘S’ spec gets reduced from 150 ppm in BS-III to 50 ppm in BS-IV and finally to only 10 ppm in BS VI.
 
Such levels of drastic sulphur reduction in BS-VI auto fuels calls for revamps or additional facilities in almost all the refineries. Modifications are likely to include hydro-processing unit capacity de-bottlenecking and/or addition of new units, sulphur recovery blocks, catalyst replacement in hydro-treating units, associated modifications in off sites and utilities, etc.
 
Presently, the refineries in consultation with respective consultants are firming up the project proposals required for BS-VI quality compliance. Time required for implementing these projects would be about 3.5 to 4 years, depending on the nature & scope of the particular project. “Indian Oil refineries are confident to meet the deadline of April 2020 set by the GoI for supplying BS-VI quality fuel in the market,” said IOCL in a press release.
 
IOCL’s new Paradip Refinery, which will produces motor spirit and high speed diesel of BS-IV quality, will switch over to BS-VI quality to comply with the timelines set by Government of India, added the company in the press.