Vin diesel

GURUGRAM : “Inaction” and “evasive” responses on the alleged use of DG sets and dumping of waste in the city has raised “serious concerns” about implementation of environmental norms, the National Green Tribunal ( NGT ) said in an order summoning officials of the MCG, pollution control board and the department of town and country planning (DTCP) to appear before it.

The tribunal was hearing a petition filed last year by Gurgaon resident Raman Sharma, who had alleged that 10 diesel generators were being run from a green belt in Malibu Town , Sector 47, and that construction and demolition waste was regularly dumped in the residential colony.

Taking up the plea, the bench of judicial magistrate Arun Kumar Tyagi and expert member Afroz Ahmed said on March 15 that the responses by a joint committee formed by it to look into the petition last year were “vague and “evasive”.

Action taken to pick up and treat C&D waste came late while the pollution department did not try to impose environmental compensation on MCG for doing so, the bench said.

“The C&D waste was removed after more than six months even after filing of the present case and remained lying for almost two years within the knowledge of the Municipal Corporation… no proceedings for imposition of environmental compensation on Municipal Corporation, Gurugram, have been initiated by the HSPCB ,” the order, released on March 24, said.

The tribunal also cited the joint committee’s report – filed in August 2022 – and said DTCP had “accepted” that permission was not given to run DG sets from Malibu Town’s green belt. But the forest department, in the same report, took a “contradictory stand” and said it received a request by DTCP for “no objection” to placing generators in the green belt, NGT observed.
“The insensitivity /inaction/negligence on the part of the concerned officers and submission of evasive/vague replies as to the matter being under process without taking the requisite remedial measures immediately raises serious concerns about implementation of environmental laws and discharge of constitutional/statutory obligations by the State and its instrumentalities and requires serious consideration for adoption of measures regarding accountability of the concerned officers,” the bench said.

From October 1, 2022, the use of diesel generators was also barred in NCR, according to norms set by the Commission for Air Quality Management (CAQM).

MCG commissioner PC Meena, Haryana State Pollution Control Board (HSPCB) member-secretary Pradeep Kumar and DTCP director TL Satyaprakash have to appear before NGT on March 28, the next date of hearing.

“We consider presence of the Member Secretary, HSPCB, Commissioner, Municipal Corporation Gurugram and the Director, Town and Country Planning, before this Tribunal on the date fixed to be essential for production of the relevant record pertaining to the matters under adjudication…” the order read.

When asked, MCG commissioner PC Meena told TOI the corporation has complied with NGT’s directions. “We have already removed the C&D waste, which was lying in the unauthorised area. In future, we will also comply with NGT orders,” he said.

HSPCB member-secretary and DTCP officials could not be reached for comment till Sunday evening.

Icra said on Monday. According to a recent Icra report, the electric segment is likely to account for 14-16 per cent of new three-wheeler sales (excluding rickshaws) by FY2025, up from 8 per cent currently.

Penetration is estimated to rise to 35-40 per cent by FY2030 as the product gains more acceptance and financing-related challenges subside, as per the report.

Icra said, according to its recent channel check, most e3W dealers have seen double-digit growth in sales in the last two years, owing to various factors, such as lower operating costs, exemptions from registration and road taxes, and higher demand for last mile connectivity.

However, while demand for e3Ws (including e-rickshaws) is increasing, sales have been limited by a lack of financing options, with the loans being offered at high-interest rates, poor loan-to-value ratios, and shorter EMI tenures, it said.

Furthermore, many large banks and NBFCs are not yet lending to this segment, limiting the buyer’s financing alternatives, it said, adding that almost three-quarters of the dealers polled believed that improving finance availability will be the most effective way to boost e3W sales.

“e3Ws (including e-rickshaws) have been at the forefront of India ‘s electrification journey, being among the early adopters. In 10M FY2023, the 3Ws (excluding rickshaws) recorded an electric penetration of 8 per cent, compared to 4 per cent for two-wheelers and 1 per cent for passenger vehicles,” said Kinjal Shah , Vice President at Icra.

While sales dropped substantially in the aftermath of the pandemic, they rebounded at a healthy rate in the current fiscal year, surpassing pre-pandemic levels by a solid margin, she added.

According to the rating agency, a favourable regulatory environment with central and state government subsidies to lower capital costs, as well as reduction or waiver of registration fees, road taxes, and permit requirements continue to be supportive of e-auto adoption.

Coupled with the inherently lower running costs, this results in a much lower (40-45 per cent) total cost of ownership ( TCO ) than conventional diesel or CNG three-wheelers, making the conversion to e-autos an attractive proposition, Shah stated.

Noting that until now, the unorganised e-rickshaw industry has dominated the expansion of the e3W market, accounting for 90 per cent of all e3Ws sold in the country, Icra said this segment has thrived over the last five-seven years due to lower upfront expenses and operational savings, as well as minimal compliance requirements.

However, e-autos, which have a larger load-bearing capacity and top speed than e-rickshaws, are also gaining popularity, with sales split evenly between the goods and passenger carrier segments, it said.

The latter has been fuelled in large part by favourable operating economics and a desire by numerous companies, notably e-commerce firms, to employ green vehicles for last-mile transportation needs.

The e-auto passenger carrier segment, on the other hand, has had relatively lower levels of electric vehicle adoption, although this trend is improving, the report said.

Because e-rickshaw is also an option for passenger transportation, with lower upfront costs, more seating capacity and fewer compliance requirements, the adoption of e-auto passenger carriers has been relatively slower, it observed.

“The outlook for e3W (including e-rickshaws) remains favourable in the medium-to-long term due to growing demand for electric vehicles as a result of factors, such as environmental concerns and higher CNG and diesel prices,” Shah noted.

Furthermore, several cities are increasingly limiting the registration, admission, and usage of polluting vehicles, and as a result, e3Ws are expected to gain further popularity, the report said.

“Additionally, lower TCO, as well as the government’s push for net zero targets and support from government incentives, are expected to propel e-auto sales in the medium to long term. With incentives under the FAME-II scheme set to expire in a year’s time, there is a likelihood of sales pace gaining further momentum in the upcoming fiscal,” she emphasised.

Saudi Aramco ‘s Jizan refinery is set to increase output of ultra-low sulphur diesel ( ULSD ) and reduce exports of vacuum gasoil ( VGO ) as it ramps up production in the second quarter, industry sources said.

The refinery could produce up to 250,000 barrels per day (bpd) of ULSD, or 10-ppm gasoil, when it hits full capacity.

This could boost Aramco ‘s fuel exports to Europe, the sources said.

European countries have been looking to replace supply from Russia after the European Union imposed an embargo on Russian oil product imports from Feb. 5.

Both Saudi Aramco and Kuwait Petroleum Corp are ramping up output from new refineries this year, which will help meet supply shortfalls in Europe and cool prices of refined products.

“Increasing availability of Middle Eastern gasoil will also weigh on arbitrage opportunities to ship Asian gasoil to West of Suez ,” FGE analysts said in a note.

“We expect the share of Middle Eastern volumes in Europe’s diesel import mix to increase relative to Asia in the coming months.”

Saudi Aramco declined to comment.

Located in Saudi Arabia’s southwest Red Sea coast, the $21 billion Jizan refinery and petrochemicals complex capable of processing 400,000 barrels per day of crude started up in end-December 2021 to early 2022 after a delay from 2018, a source close to the matter said.

The boost in refining capacity will also help Saudi Arabia to lock in more long-term agreements to sell refined products to customers while using naphtha as feedstock for petrochemicals, the sources said. The refinery’s hydrocracker unit and integrated gasification combined-cycle (IGCC) plant have just been started up, they added.

A hydrocracker processes residual fuel and VGO to produce diesel and kerosene.

This could end Jizan’s residual fuel exports, with about 90,000 bpd of high-sulphur fuel oil and vacuum residues estimated to be fed into the power plant, said FGE.

The refinery offered one VGO cargo of 80,000 tonnes (500,000 barrels) for April 15-17 loading, industry sources said, though exports are likely to fall in subsequent months.

Electric rickshaws have been a key driver of the three-wheeler segment’s 50 per cent electric vehicle adoption in FY23. According to statistics from Vahan Dashboard, the three-wheeler category , one of the country’s early adopters of EVs, recorded an EV penetration of 53 per cent in this fiscal year The corresponding figures for the two-wheeler and passenger vehicle segments were 5 per cent and 1 per cent, respectively.

The unorganized e-rickshaws are now driving EV penetration in the three-wheeler category. E-rickshaws made up just over 90 per cent of the 3.9 lakh electric three-wheelers sold in this fiscal (as of March 26, 2023).

The adoption of electric auto passenger carriers has been gradual, despite the fact that they have improved peak speeds, ranges, and load-carrying capacities. Yet, due to their accessibility, cheap maintenance costs, and minimum compliance requirements, e-rickshaws—another choice for passenger transportation needs—have witnessed a surge in popularity in recent years.

In comparison to diesel three-wheelers’ INR 2.8-3.2 per km and CNG three-wheelers’ INR 2.5-3 per km operating expenses, according to ICRA estimates, the expenses per km for e-autos and e-rickshaws, are INR 0.2-0.4 per km and INR 0.3-0.5 respectively.

The penetration of EVs in the 3W category, which excludes the e-rickshaw segment, is comparatively lower at 8 per cent, however it has increased over the previous two years.

By FY25, this penetration level is anticipated to rise to 14 per cent–16 per cent (excluding rickshaws).

Due to advantageous operating economics, a push by e-commerce enterprises and other logistics players toward the use of green cars, and more favorable penetration trends in the goods carrier category, the e-auto industry has seen a rise in the usage of electric vehicles.

A favourable policy environment with central and state government subsidies to lower capital costs, a decrease or waiver of registration fees, road taxes, and permission requirements are just a few of the elements that will likely accelerate the adoption of e-autos in the future.