CONCLUSION & RECOMMENDATIONS

15.0 CONCLUSION & RECOMMENDATIONS

India has less than 0.4 percent of the world's crude oil deposits and rising oil imports are a major drain on the country's foreign exchange reserves. Expecting a steep rise in annual energy demand for power and transportation in the coming years, development of renewable energy technology options especially for the transportation sector has become a major thrust area now. The Government has been funding renewable energy programmes since the early 1980s. Parallel research and projects are being undertaken aiming at exploring alternative road transportation fuels but commercialization of various alternatative fuels still remains a dream though introduction of CNG happens to mark a step in the right direction.

The merits of alternate fuels are well recognized but fuel cost is very often perceived as the bottleneck for promotion of the fuel. Like any other new technology, cost of new fuel may be higher at the inception stage but as economies of scale exists for a product like auto-fuel, which caters to mass consumption, the cost factor smoothens with time making these fuels competitive with the existing one. Moreover, when the feedstock is domestic and renewable, it gives dividends by making the local market economy more vibrant. Therefore, any alternative fuels programme deserves greater Government support and will to succeed. Taking into account the feasibility, emission benefits and other logistics, the following issues may be considered for exploring any new alternative fuels in the country:

- The need for creation of a National Alternative Fuels Coalition (NAFC) is increasingly felt now. The coalition should have participation from all concerned agencies and ministries including automobile manufacturers, refiners, NGOs, etc.

- The long-term policy goals should be neutral to all types of vehicle fuels, both conventional fuels and alternative fuels. Fuel options may be many but choice of use should always be the users' preference.

- Availability of surplus conventional fuels outstripping the demand should not become a market barrier for introduction of alternative fuels.

- Pre-requisites like proper retail-fueling infrastructure, toxicological study of the fuels, demand supply logistics; legislative and regulatory formalities should be accomplished well in advance prior to lunching a new fuel.

- Temporary financial incentives for both the public and private sectors can help push the marketplace to develop an alternative fueling infrastructure and offer a greater variety of fuels for sale. Modest state financial incentives can potentially be justified by the energy security, risk reduction, trade balance, economic development, and environmental benefits that are possible from a greater use of alternate fuelled vehicles (AFVs). Various incentive approaches should be considered including incentives for alternative fueled vehicle purchases, retail fueling infrastructure and in-state production of alternative fuels. Should one or more incentive approach appear warranted, it should be justified by an analysis of estimated benefits and costs. Incentives should be temporary and discontinued after AFVs comprise a significant portion of the motor vehicle population.

- Some field trials with various alternative fuels already exist in India but most of the studies were conducted on old vintage vehicles. Considering the recent developments in technologies, it is recommended to carry out comprehensive field trials with new technology vehicles in Indian conditions. Institutes like IIP, IOC (R&D), etc. are capable of doing such studies and Government may avail funds to the concerned sectors for enhanced R&D in this field.

- Information dissemination with regard to the merits and demerits of alternative fuels play an important role in promotion of the fuel. Intensive public awareness campaigns need to be initiated by the responsible institutions to educate the common public regarding the facts and myths of alternative fuels.