Policy Buzz: Environment vs Auto companies?

Environment vs Auto companies?

Auto companies are lobbying in power corridors to postpone the deadline to introduce clearer Euro-III fuel in the whole country from April 1 to October 1. They have argued that oil companies have failed in supplying the higher grade fuel simultaneously in the entire nation on April 1. Oil companies have countered saying that they can cover the entire nation only in phases. On April 1, Goa became the first state to switch over from Euro-II to Euro-III.

And by July this year Euro-III will be available in 60% of the country, a director in one of the oil PSUs board said. "Its impossible for such a big country to switch over from Euro-II to Euro-III on one particular day," he said, requesting anonymity as the issue may now be resolved by the Cabinet.

Meanwhile, environment regulator Bhure Lal has directed the oil ministry to ensure implementation of a state-wise Euro-III implementation schedule. As per the schedule Chhattisgarh, Madhya Pradesh and Maharastra will adopt the standard from June 1 and 17 other states by July 1. Higher grade fuels will reduce emission of sulphur and benzene, the major pollutants.

Exports of cotton yarn

The textile lobby has finally managed to convince the government to make exports of cotton yarn more expensive. The commerce department has decided to withdraw the 7.4% duty entitlement pass book (DEPB) benefit on the product. This would take away the benefit of duty-free imports given to exporters of cotton yarn based on the value of exports.

Moreover, there are talks of imposition of a 2%-5% of export duty on cotton in addition to a ceiling on the volume that can be exported. It is believed that the finance ministry has already given its nod to the proposal and it would be notified soon. Now that cotton procurement is long over, the move is not expected to have much political opposition from cotton growing states.