Prices of gas for power projects may fall further
Power Minister Piyush Goyal expects prices to fall further in the next round of subsidy-based auction of gas for power projects, given the softening of global rates and muted electricity demand in the country. Generators are unable to sell power as distribution companies are buying cheap electricity on a short-term basis from the market, which makes for a strong case for the bids to be even more favourable for the government. In an attempt to kick-start stranded gas-based projects, Prime Minister Narendra Modi’s government had introduced subsidy-based auctions to import gas and supply it to these power units. Lower prices for gas would translate into a lower subsidy burden for the government. “The fourth round of bids will start soon and we are looking at the possibility of even lower prices given that the international gas prices are much lower than what they were one-and-a-half years back when we formulated the scheme. Also, the appetite for expensive power is not there,” Goyal said. In the third round of the bids that concluded earlier this year, none of the nine participants sought subsidy support, resulting into a savings of. Rs. 16 billion to the government. The fourth round is expected to take place in September. He said generators are unable to sell power as discoms are buying cheap electricity from short term market. “We are striving to transform India from a power-deficit nation to a power-surplus nation. Not only that there must be sufficient power, it must be affordable” as well, he said at the Motilal Oswal investor conference here late Tuesday. The minister said the UDAY (Ujwal Discom Assurance Yojana) scheme for reviving beleaguered discoms has been a game-changer. While there is still time before one can see substantial improvement on the ground, the benefits of the scheme are already visible on the financial side, he said. “The results are encouraging and states are serious about implementing it.” If all states implement the scheme efficiently, it will benefit the country by $25-26 billion every year in terms of the savings, he said. Goyal said the government is determined to remove roadblocks to achieve the target of 24×7 power to all and that the units of power generated in the country could double in the next five-six years on the back of better efficiently and capacity addition. “By merely utilising existing capacity efficiently, India can enhance power generation by 50%,” he added. Dion Sims Womens Jersey
ONGC Videsh to set up crude oil trading desk in Singapore
As part of a move to monetise its overseas hydrocarbon production, state-run ONGC Videsh Ltd (OVL) plans to set up a crude oil trading desk in Singapore. This comes in the backdrop of transporting crude oil to the world’s third-largest oil market posing a logistical challenge from some geographies. OVL has been exploring oil trading as a viable route to monetise its produce. Currently, it has been following the tender route, which is time consuming and also proves disadvantageous in terms of flexibility. An OVL spokesperson, in an emailed response, said, “In the long run, we intend to develop our own trading team to market our produced crude to maximise benefit to the company. It might be located in Singapore.” OVL recently signed a pact with SOCAR Trading SA for oil trading aimed at optimising crude price realisation from its portfolio. SOCAR Trading is the international marketing and development arm of the State Oil Company of Azerbaijan Republic (SOCAR), headquartered in Baku. The overseas arm of Oil and Natural Gas Corp. (ONGC) Ltd has built up a significant overseas energy portfolio of 37 projects in 17 countries with an investment of around $23.81 billion. It has also set a target to achieve 20 million tons (MT) by 2017-18 from the current 8.36 MT of oil and oil-equivalent gas. “We will be coming up with an oil trading desk at our subsidiary office in Singapore,” said a person aware of the development, requesting anonymity. “The subsidiary office in Singapore was initially set up for Vankorneft transactions,” added the person quoted above. OVL acquired a 15% equity stake in Russia’s JSC Vankorneft from Rosneft Oil Co. in 2015 for $1.27 billion. In addition, OVL also plans to acquire another 11% stake in Russia’s second-largest field by production. This also comes in the backdrop of a fall in international crude prices, which has made oil-producing countries financially vulnerable. Russia is particularly at risk because it has to additionally cope with the impact of the sanctions imposed by Western nations. Another state-run firm GAIL (India) Ltd opened a liquefied natural gas trading desk in Singapore in November 2011. “ONGC Videsh Ltd and SOCAR Trading SA signed a memorandum of understanding (MoU) on 27 May 2016 at Geneva. The objective of the MoU is to explore possibilities of joint marketing of ONGC Videsh’s crude oil portfolio by leveraging SOCAR Trading’s experience in oil trading,” OVL said in a 31 May statement. Experts think this is a prudent step as OVL can leverage Singapore’s advantage as a location. “Singapore is the trading hub and an established place for oil trading where the company can hire local experts and employ Indian experts as well. It is an apt place for setting up an oil trading desk because of its protected and transparent nature. Oil prices keep varying every minute; therefore, it is better to set this up at a place where both buyers and sellers are present,” said Ranbir Singh Butola, OVL’s former chairman and managing director. Butola added that he was unaware of any such development. From its 14 producing assets, OVL has produced 4.137 MT of oil and 2.558 billion cu. metres of gas for the first nine months of financial year 2015-16. India imports one-third of its energy requirements. The country imported 202.85 MT of crude oil in 2015-16 for Rs.4.16 trillion. For 2014-15, India imported 189 MT of crude oil at a cost of Rs.6.87 trillion. Kwon Alexander Jersey
Lanka IOC mulls expanding Trinco bunkering operations
Sri Lanka’s IOC, a subsidiary of Indian Oil Corporation, is to expand their existing bunkering operations at Trinco port as the prospects for this business line are promising, particularly given the strategic positioning of the port and its significant potential for growth, the company said. Trincomalee is the world’s 5th best natural harbour and provides an excellent opportunity to meet the bunker need of the vessels operating on the Bay of Bengal – Western Countries shipping route. LIOC commenced bunkering operations in Trincomalee in June last year and to optimize the storage and operating costs the company commissioned storage of bunker fuels at its Trincomalee Terminal in February 2016. The company currently operates one bunker barge with capacity for 400 MT of 380cst fuel and 400 MT of MGO. The forex income generated from this business line has enabled the LIOC to hedge against its foreign currency payments in the purchase of oil imports. During the 2015/16 financial year, bunkering has achieved a volume growth of 20 percent although revenue declined by 31 percent due to the reduction in international prices, the company’s annual report showed. Operating from Colombo and Trincomalee harbour, LIOC is the 2nd largest operator for bunkering in the island’s bunkering market supplying fuel oil and diesel for vessels at berth and anchorage at the Colombo and Trincomalee ports, which accounted for 13 percent of company’s revenue. During the Indian PM’s visit to Sri Lanka, Ceylon Petroleum Corporation and LIOC agreed to jointly develop the upper tank farm of the China Bay installation in Trinco. Lanka IOC, already operates 15 oil storage tanks out of 99 tank farm in Trinco and each storage tank has a capacity of around 12,000 tons. Meanwhile, petroleum sector unions recently charged the government for trying what they called ‘to privatize’ the Trincomalee tank farm to India and Hambanthota oil and bunkering business to China. Convener for Petroleum Union Collective D J Rajakaruna said the government allows other countries to make profits out of promising bunkering business in Trinco and Hambanthota without letting the business to the state owned CPC. He further charged that the government is also planning to form a separate company under CPC for aviation business with a view to ‘privatize’. Corey Graham Authentic Jersey
Mukesh Ambani says RIL, BP will not drop cost recovery arbitration for KG-D6
Reliance Industries Chairman Mukesh Ambani has said that the company will not withdraw the cost recovery arbitration over the Krishna-Godavari (KG) asset, dismissing speculations that the company and its joint venture partner are close to dropping arbitration so that they are eligible for higher pricing as per the government’s policy. Ambani refrained from commenting on the report by the panel headed by former chief justice of Delhi High court AP Shah detailed Tuesday, which said that the company made “unjust” gains by pumping natural gas that flowed from ONGC’s adjoining block. “Our upstream business is in partnership with BP and we want to constructively make sure that we are not going to withdraw the cost recovery arbitration. We are confident of constructively finding a solution,” Ambani said in response to shareholders’ query at the company’s Annual General Meet on Thursday. Ambani’s statement comes at a time when speculations are rife that RIL, BP and their partner Canada’s Niko Resources are contemplating pulling out of the multiple arbitration they have against the government relating to the KG-D6 asset. Prime Minister Narendra Modi-led government announced policy changes in March this year that requires them to drop the arbitration in case they want to get the higher gas prices being offered. The RIL-led consortium has formally started the process of developing their deep sea fields, which the industry saw as precursor to them withdrawing arbitration so that they can charge market price for natural gas. “We will work with BP and we will not give up our legal rights. We expect the results in consultation with our partner as we have to respect our partner,” he said. In March, the government detailed a new policy linking the price of gas from undeveloped difficult fields such as deep sea and high pressure-high temperature areas to alternative fuels, effectively doubling the prices. While the maximum price available to domestic natural gas is $3.06 per unit, difficult fields can avail $6.61 per unit as gas price. The same policy states that any operator engaged in litigation against the government can not avail these prices. “Our KG-D6 block has produced 2.6 TCF of gas and 29 million barrels of crude oil since commencement of output. We are making our best efforts to sustain production from this complex deep water basin,” Ambani said. “We are also evaluating, along with our partner BP, development plans to monetize the remaining resources of 4-5 TCF from this block, in the framework of the new gas pricing policy.” The government disallowed $2.756 billion cost incurred by RIL and its partners in the KG-D6 block, citing that they missed the gas production target for five consecutive years beginning April 1, 2010. As per the Production Sharing Contract, RIL and partners deduct all capital and operating expenses from the sale of gas before sharing profit with the government but the disallowed amount changes the calculation and thus the government has claimed additional profit petroleum of $246.9 million. RIL and partners challenged this, citing that the output fall is a natural phenomenon and they cannot be held responsible for it. Darius Slay Womens Jersey
Making efforts to sustain production in the KG basin: Mukesh Ambani
A day after the A.P. Shah Committee opined that Reliance Industries Ltd (RIL) drew gas from the adjacent block belonging to state-run Oil and Natural Gas Corp. Ltd (ONGC) in the Krishna-Godavari (KG) basin, RIL’s chairman and managing director Mukesh Ambani said the private explorer is making best efforts to sustain production in the complex deepwater basin. Ambani was addressing the company’s annual general meeting on Thursday in Mumbai, wherein he announced the launch of Reliance Jio telecom service starting 5 September. The one-man Committee submitted a report late on 31 August to petroleum minister Dharmendra Pradhan alleging that RIL has produced 9 billion cu. metre (bcm) of gas out of the 11 bcm that flowed from the ONGC block to that of RIL from the deepwater field off the coast of Andhra Pradesh between 1 April 2009 and 31 March 2015. “Our KG D6 block has produced 2.6 tcf (trillion cu. feet) of gas and 29 million barrels of crude oil since commencement of output. We are making our best efforts to sustain production from this complex deepwater basin,” Ambani said on Thursday. The Shah Committee report concluded that RIL should pay the government for the natural gas it has drawn from the adjacent block in the past seven years. “The Committee also notes that the question of quantification of unfair enrichment is to be decided by the government of India, with the principle that whatever benefit RIL received in terms of the migrated gas is liable to be returned to the government of India. The Committee faced significant limitations in giving a figure to the final value of the migrated gas produced by RIL during the term of its lease, due to the lack of data and the Committee’s inherent technical limitations,” the report available on the petroleum and natural gas ministry’s website said. India imports one-third of its energy requirements. The country imported 202.85 MT of crude oil in 2015-16 for Rs.4.16 trillion. For 2014-15, India imported 189 MT of crude oil at a cost of Rs.6.87 trillion. “We are also evaluating, along with our partner BP, development plans to monetise the remaining resources of 4-5 tcf from this block, in the framework of the new gas pricing policy,” Ambani said. RIL has 60% interest in KG-D6 block while Niko Resources Ltd of Canada holds 10%. BP Plc of the UK holds the remaining 30%. Ambani also announced that RIL’s over 1,050 fuel retail outlets are operational across India and another 200 are at advanced stages of being re-commissioned. Phil Esposito Jersey
Oil ministry seeks uniform taxes on LPG for domestic, commercial use
The oil ministry is seeking to rationalise taxes on cooking gas sold to all types of consumers in order to block diversion of cylinders meant for domestic use, ministry officials said. It has written to the finance ministry to impose uniform taxes on cooking gas, or liquefied petroleum gas (LPG), used for domestic and commercial consumption. The finance ministry will take a final call on the demand that was also made in the past. Gas cylinders meant for domestic use attract no taxes at present while commercial users have to pay a basic customs duty of 5 per cent, additional customs duty of 8 per cent and a central excise duty of 8 per cent. In addition to central taxes, commercial users have to pay local levies imposed by states. All these duties together make commercial LPG about a third more expensive than domestic. In Delhi, non-subsidised cooking gas costs about Rs 34 per kilogram while the commercial LPG costs about Rs 45 per kg. About 90 per cent of the total LPG consumed in the country is used by households, although it is suspected that some subsidised cylinders meant for household use are diverted for commercial purpose. Besides not having to pay taxes, households also get subsidy on 12 cylinders of gas they consume in a year. The subsidy has sharply shrunk to Rs 64 per cylinder due to a nearly two-thirds fall in crude oil price in the past two years. In the meantime, the consumption of domestic non-subsidised cylinders has also sharply risen, giving rise to suspicion that some of these cylinders might be getting diverted to commercial use since there is a major price difference between the two types of cylinders due to incidence of taxes. The oil ministry wants to put an end to these incentives for diversion by having the same price for all cylinders for domestic or commercial use. One way of doing it could be to scrap all taxes from commercial cylinders, which will result in some loss of revenue that could be offset by lower subsidy due to little need for diversion of domestic cylinders, an official said. Another possible way could be to impose some tax on domestic cylinders to offset loss due to lowering of taxes on commercial LPG, and since oil prices are low, households may not feel the pinch, he said. Uniform taxes will also boost the private sector’s presence in LPG distribution. Private sector refiners Reliance Industries and Essar Oil are keen on carving a big share in LPG distribution dominated by the public sector but are hindered by the presence of subsidy and varying tax structure. India has about 17 crore domestic LPG consumers and plans to add 10 crore consumers in three years as lower oil prices keep cooking gas more affordable and the government’s fuel subsidy burden lighter. LPG consumption in the country grew 8.6 per cent in 2015-16 from that in the previous year. Sergio Romo Womens Jersey
IOC raises oil import from Iran to 5 MT for FY 2017
Indian Oil Corp, the nation’s biggest oil firm, has raised crude oil import from Iran to four fold and has cleared most of the past payments as sanctions against the Persian Gulf nation were eased. “We have contracted to import 5 million tons (MT)of crude oil from Iran in 2016-17, up from 1.2 MT,” IOC Director (Finance) A K Sharma said. India has steadily raised crude oil imports from Iran after US sanctions were lifted in January this year. Iran today is India’s fourth biggest crude oil supplier. Iran, which was India’s second biggest supplier of crude oil after Saudi Arabia till 2010-11, had been relegated to 7th place in 2013-14 and 2014-15 out of the 50-odd nations India sources its crude oil from. But with the lifting of sanctions in January this year, crude oil imports have steadily climbed. India imported 12.7 MT of crude oil in 2015-16, up from 11 MT in the previous two fiscals. That made it 6th largest supplier of oil to India. In April-June this year, India bought 5 MT of crude oil from Iran, making it the fourth largest supplier just a shade behind Venezuela which exported 5.2 MT. Iran had in 2009-10 supplied 21.2 MT which came down to 18.5 MT in 2010-11 and to 18.1 MT in the year after. Sharma said imports from Iran were going exactly in line with the plans. “Month-wise lifting is in line with the 5 MT contracted volume,” he said. IOC Director (Refineries) Sanjiv Singh said the company had paid USD 510 million out of the total outstanding of USD 621 million due to Iran in past oil dues. Sanctions had blocked payment routes and dues had accumulated over the past couple of years. After accounting for the exchange variations, the total outstanding due is only USD 55 million now, he said. Iraq this year has overtaken Saudi Arabia as India’s top oil exporter. It sold 11 MT of crude oil to India during April-June, higher than 10 MT sourced from Saudi Arabia. Saudi Arabia has been India’s top supplier of crude oil – selling 35 MT of oil in 2014-15 and 40.04 MT in 2015-16. During the first three months of current fiscal, India imported 53.2 MT of crude oil, 65 per cent of which came from the volatile Middle East region. India imports about 80 per cent of its oil needs. Allen Bailey Authentic Jersey
Oil discoveries at 70-year low signal supply shortfall ahead
Explorers in 2015 discovered only about a tenth as much oil as they have annually on average since 1960. This year, they’ll probably find even less, spurring new fears about their ability to meet future demand. With oil prices down by more than half since the price collapse two years ago, drillers have cut their exploration budgets to the bone. The result: Just 2.7 billion barrels of new supply was discovered in 2015, the smallest amount since 1947, according to figures from Edinburgh-based consulting firm Wood Mackenzie Ltd. This year, drillers found just 736 million barrels of conventional crude as of the end of last month. That’s a concern for the industry at a time when the US Energy Information Administration estimates that global oil demand will grow from 94.8 million barrels a day this year to 105.3 million barrels in 2026. While the US shale boom could potentially make up the difference, prices locked in below $50 a barrel have undercut any substantial growth there. New discoveries from conventional drilling, meanwhile, are “at rock bottom,” said Nils-Henrik Bjurstroem, a senior project manager at Oslo-based consultant Rystad Energy AS. “There will definitely be a strong impact on oil and gas supply, and especially oil.” Global inventories have been buoyed by full-throttle output from Russia and OPEC. They’ve flooded the world with oil despite depressed prices as they defend market share. But years of under-investment will be felt as soon as 2025, Bjurstroem said. Producers will replace little more than one in 20 of the barrels consumed this year, he said. Global spending on exploration, from seismic studies to actual drilling, has been cut to $40 billion this year from about $100 billion in 2014, said Andrew Latham, Wood Mackenzie’s vice president for global exploration. Moving ahead, spending is likely to remain at the same level through 2018, he said. Exploration is easier to scratch than development investments because of shorter supplier-contract commitments. This year, it will make up about 13 percent of the industry’s spending, down from as much as 18 percent historically, Latham said. The result is less drilling, even as the market downturn has driven down the cost of operations. There were 209 wells drilled through August this year, down from 680 in 2015 and 1,167 in 2014, according to Wood Mackenzie. That compares with an annual average of 1,500 in data going back to 1960. 10-Year Effect Ten years down the line, when the low exploration data being seen now begins to hinder production, it will have a “significant potential to push oil prices up,” Bjurstroem said. “Exploration activity is among the easiest things to regulate, to take up and down,” said Statoil ASA Chief Executive Officer Eldar Saetre, in an interview at the ONS Conference in Stavanger, Norway on Monday. “It’s not necessarily the right way to think. We need to keep a long-term perspective and maintain exploration activity through downturns as well, and Statoil has.” Oil prices at about $50 a barrel remain at less than half their 2014 peak, as a glut caused by the US shale boom sent prices crashing. When the Organization of Petroleum Exporting Countries decided to continue pumping without limits in a Saudi-led strategy designed to increase its share of the market, US production retreated to a two-year low. Global benchmark Brent added 0.2 per cent to $49.38 a barrel at 1:04 p.m. Singapore time on Tuesday. Creating Opportunities Kristin Faeroevik, managing director for the Norwegian unit of Lundin Petroleum AB, a Stockholm-based driller that’s active in Norway, said it will take “five-to-eight years probably before we see the impact” on production from the current cutbacks. In the meantime, he said, “that creates opportunities for some.” Oil companies will need to invest about $1 trillion a year to continue to meet demand, said Ben Van Beurden, the CEO of Royal Dutch Shell Plc, during a panel discussion at the Norway meeting. He sees demand rising by 1 million to 1.5 million barrels a day, with about 5 percent of supply lost to natural declines every year. On Monday, oil declined amid doubts producers will agree on a deal to stabilize the market when suppliers meet next month for informal talks. Iran’s plan to continue boosting crude output until it regains its pre-sanctions OPEC market share is dimming prospects of collective action, said Patrick Allman-Ward, CEO of Dana Gas PJSC. Less Risk Persistently low prices mean that even when explorers invest in finding new resources, they are taking less risk, Bjurstroem said. They are focusing on appraisal wells on already-discovered fields and less on frontier areas such as the Arctic, where drilling and developing any discovery is more expensive. Royal Dutch Shell Plc and Statoil ASA, among the world’s biggest oil companies, abandoned exploration in Alaska last year. “Traditionally, it’s the big companies that have had the means to gamble, and they might be the ones that have cut the most,” Bjurstroem said. Overall, the proportion of new oil the industry has added to offset the amount it pumps has dropped from 30 per cent in 2013 to a reserve-replacement ratio of just 6 per cent this year in terms of conventional resources, which excludes shale oil and gas, Bjurstroem predicted. Exxon Mobil Corp. said in February that it failed to replace at least 100 per cent of its production by adding resources with new finds or acquisitions for the first time in 22 years. “That’s a scary thing because, seriously, there is no exploration going on today, “Per Wullf, CEO of the offshore drilling company Seadrill Ltd., said by telephone. Jason Demers Jersey
Norway Gas India in focus for Norwegian expertise with natural gas
Innovation Norway, DNV GL and the Norwegian Embassy organized a seminar in New Delhi recently to display Norwegian expertise within natural gas, and to address the challenges and opportunities in the evolving market in India. Innovation Norway, DNV GL and the Norwegian Embassy organized a seminar in New Delhi recently to display Norwegian expertise within natural gas, and to address the challenges and opportunities in the evolving market in India. The seminar provided unique opportunities to get the latest on industry developments, driving technologies, safety guidelines and operational issues. “India wants to combine economic growth with low carbon emissions, and aims to deliver electricity 24X7 to all Indians. Norway aims to be your partner in achieving these goals”, said Ms Hanne Meldgaard, Minister-Counsellor, Norwegian Embassy, expressing hope for an even stronger partnership on energy and maritime between India and Norway in the future. Inland Waterways Authority of India, represented by Shrikant Mahiyaria, said “India is keen to promote LNG as bunker fuel for sustainable and efficient inland transportation. I am sure that the bilateral cooperation between Norway and India will grow in this sector”. The rapid economic growth in India is highly dependent on an increased supply of energy. Small-scale distribution of LNG will be used to fuel up smaller power plants, industry users and as fuel for ships. There is a positive environmental aspect of using LNG as an alternative to heavy fuel oil. Globally there are now another 50 LNG vessels under construction, of which 20 are Norwegian owned. According to DNV GL there will be 1000 vessels operating on LNG within 2020. LNG propelled vessels can significantly contribute to reduced emissions, both for the Norwegian short sea fleets and for deep-sea transportation. The Norwegian Government has also developed and implemented a specific Maritime Strategy during the last 7 years that focus on cleaner and greener shipping. By combining financial instruments like a NOX fund, reduction of port taxes and duties, implementing ship scrapping regimes for those ship-owners selecting to renew their old ships with LNG propelled ships, promoting development of small scale LNG distribution, etc. it is possible for governments to be a catalyst in facilitating a change to clean short sea shipping within a limited number of years. Use of Liquefied Natural Gas (LNG) is one of the solutions for a greener energy sector in India. “LNG is a key feature of India’s future plans for a sustainable energy sector. This cannot be complete without Norway, because of your experience”, said Sunjay Sudhir, Joint Secretary of the Ministry of Petroleum and Natural Gas. With two decades of experience, Norwegian companies develop and deliver products along the entire LNG value chain. Norway has developed small-scale LNG infrastructure for more than 10 years and has today around 40 distributed LNG terminals along the coast and 50 LNG-propelled vessels in operation. This makes Norway one of the pioneers in this business, and it has “propelled” the development of highly skilled Norwegian vendors and suppliers of equipment and services in this sector. Tre Flowers Jersey
Diesel ban: Anant Geete asks auto companies not to take ‘panga’ with courts
Union Minister Anant Geete today said the auto industry has the government’s backing on the issue of high-capacity diesel cars, but cautioned it against taking “panga” (messing) with courts that had banned such vehicles. Union Minister Anant Geete today said the auto industry has the government’s backing on the issue of high-capacity diesel cars, but cautioned it against taking “panga” (messing) with courts that had banned such vehicles. The remarks followed the comments made by SIAM President Vinod Dasari, who said the industry lost Rs 40 billion in eight months following the ban in Delhi-NCR, which was lifted by the Supreme Court earlier this month. “Vinod Dasari expressed unhappiness at the position adopted by the court on pollution. I would like to tell Vinod Dasari, don’t take panga with courts. There is no need for you to take this panga,” Geete said while addressing a conference here. Speaking at the 58th annual session of the Automotive Component Manufacturers Association (ACMA) earlier today, Dasari had said it was “improper information” to the courts coupled with media hype that led to the ban on the diesel vehicles. Led by media hype, provided with improper information, the courts decided to ban those vehicles which actually meet the standards set by the government. It is for the first time that when you meet the law, you actually get penalised. The auto industry has lost Rs 40 billion in the last eight months,” Dasari said. He is of the view that everyone wants to regulate the auto industry without looking at the real cause of pollution. Dasari, who is also MD of Ashok Leyland, added: “I feel everyone wants to regulate the auto industry. Let’s take the Delhi example. Every winter when there is fog, there is a lot of media hype, lots of NGOs get involved. They blame one industry that everyone wants to blame — auto industry.” The minister, however, sought to calm the nerves of auto manufacturers, saying the government is with them. “Perhaps for the first time, four ministries including the department of heavy industry, road transport, forests and environment and petroleum & natural gas, had come together and were discussing the issue of pollution with the court in one voice,” Geete, who holds the portfolio of heavy industries, added. The Supreme Court has now allowed registration of diesel vehicles of 2,000 cc and above with 1 percent environment cess. But Dasari doubts if the move will help in curbing the pollution level in the capital. “After all of this, what happened there is environmental cess of 1 percent for vehicles that are larger than 2,000 cc. Please tell me, people who buy such vehicles, are they going to stop buying these due to this 1 percent cess. Is that going to have an impact on Delhi pollution?” Dasari asked. He regretted that the industry is being singled out whenever there is congestion, pollution or an accident. Dasari went further, saying less than 20 percent pollution comes from the auto industry. He added that the industry has several times asked the government to ban old vehicles if it wants to reduce pollution. “Ban vehicles that cause pollution,” Dasari said. Corey Peters Authentic Jersey