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India to produce its own “reference fuels”

  • October 27, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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India to produce its own “reference fuels”

Subject: Schemes

Context:

  • India has marked a significant milestone in its quest for self-reliance with the commencement of ‘reference’ petrol and diesel production.
  • This specialized fuel, crucial for automobile calibration and testing, has been indigenously developed by the Indian Oil Corporation (IOC), reducing the nation’s dependence on costly imports.

Understanding Reference Fuel

  • Octane Number Distinction: Unlike regular and premium fuels with octane numbers of 87 and 91, reference-grade fuel boasts an impressive octane number of 97. The octane number measures the ignition quality of petrol or diesel.
  • Stringent Specifications: ‘Reference’ petrol and diesel adhere to a host of stringent specifications, encompassing parameters like cetane number, flash point, viscosity, sulphur and water content, hydrogen purity, and acid number, as mandated by government regulations.
  • Emission Testing: These specialized fuels are indispensable for emission testing of vehicles equipped with spark ignition engines.

Economic Significance

  • Reduced Import Costs: While imported ‘reference’ fuel costs approximately Rs 800-850 per liter, domestic production slashes the cost to approximately Rs 450 per liter, providing a significant cost advantage.
  • Critical for Auto Industry: ‘Reference’ fuels, characterized by higher specifications, are vital for calibrating and testing vehicles by automobile manufacturers and agencies such as the International Centre for Automotive Technology (ICAT) and the Automotive Research Association of India.
  • Innovation by IOC: The Indian Oil Corporation (IOC) has achieved a breakthrough by creating indigenous alternatives, ensuring a dependable supply of reference fuel at a significantly lower cost to support vehicle manufacturers and testing agencies.

Indigenous Technical Prowess and Export Potential

  • Boosting Make in India: The production of ‘reference’ fuel domestically underscores India’s indigenous technical capabilities, bolstering the Make in India initiative.
  • Export Prospects: After catering to domestic demand, IOC intends to explore export opportunities for reference fuel.

Energy Security Strategy and Environmental Commitment

  • Four-Pronged Energy Security: The Indian government has adopted a four-pronged energy security strategy to achieve energy independence by 2047. It involves diversifying energy supplies, expanding exploration and production, leveraging alternate energy sources, and embracing a gas-based economy, green hydrogen, and electric vehicles (EVs).
  • Ethanol Blending: India has advanced the rollout of petrol blended with 20 percent ethanol to 2025, accelerating its commitment to reduce emissions. The target of 12 percent ethanol blending has been achieved, with plans to reach 20 percent by the end of 2025.

Conclusion

  • India’s achievement in producing ‘reference’ fuel domestically is a testament to its technical prowess and commitment to self-reliance.
  • This development not only reduces import costs but also bolsters the nation’s automotive industry and contributes to environmental sustainability.
  • It reflects India’s dedication to the Aatmanirbhar Bharat mission, serving as a model for self-sufficiency in specialized sectors.
reference fuels Schemes

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