A parliamentary panel has asked the Ministry of Petroleum & Natural Gas to set up a high level inter-ministerial group to deal with the various policy issues in implementation of the Auto Fuel Vision and Policy 2025.

The Standing Committee on Petroleum & Natural Gas in its report tabled in the Lok Sabha on Thursday said it expects the Ministry to play a more proactive role in leading the coordination among various stakeholders.

“The Committee observe that the implementation of Auto Fuel Vision and Policy 2025 requires concerted efforts on the part of several stakeholders – Ministry of Petroleum & Natural Gas, Ministry of Road Transport and Highways, Ministry of Heavy Industries, Ministry of Environment & Forests, Ministry of Urban Development, Automobile Industry and State Governments,” the panel said in its report. The panel also said that a study may be conducted to assess the benefits that arise out of the implementation of the Auto Fuel Vision and Policy 2025.

For implementation of the policy, the panel have also recommended that the Ministry of Petroleum and Natural Gas should chalk out an action plan at the earliest. It has also asked the Ministry to adhere to the timelines of the Auto Fuel policy for having BS/IV quality fuels across the country by 2017 and BS-IV by 2020.

For upgrade of refineries, the panel recommends that the Ministry should take a decision to levy a cess for mobilising the required funds.

“Due to the declining trend in the prices of international crude oil and minimal under recoveries, the projected capital expenditure of ₹80,000 crore for upgradation of refineries may not be an insurmountable task,” the panel’s report said.

It noted that the Ministry has not yet taken a decision on levying a high sulphur cess of 75 paise a litre on BS-III fuel and fuel upgradation cess of 75 paise per litre on all petrol and diesel sold in India that would have mobilised ₹64,000 crore.

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