Dear Stakeholder, The 3rd General Meet of our coalition now known as IAC (Indian AutoLPG Coalition), incorporated as a trust, was held in Mumbai on March 15, 2005. Attendee List: One of the priority items to be accomplished in this meet was dissolving the formation committee and the formation of the Executive Board with the office bearers in line with the ratified charter of the coalition. Accordingly, the Executive Board was formed with its members as following:

S.No Organization Represented through

1 Reliance Industries Ltd Mr John Joseph 2 Automobile Research Association

of India (ARAI) Mr Balraj Bhanot

3 Society of Indian Automobile Manufacturers (SIAM)

Mr KK Gandhi

4 Indian Oil Corporation Ltd Mr Sunil Mathur 5 Indian LPG Industry Association Mr S K Hazra 6 CleanFUEL India/ HT Process Mr Suyash Gupta 7 Indian LPG Kit Manufacturers

association Mr Amit Shah

8 Central Institute of Road Transport

Mr A. S. Lakra

9 Minda Impco Ltd Mr Shishir Agarwal

Out of the Executive board, following shall be the office bearers of IAC

S.No IAC Office of: 1 President Mr John Joseph 2 Executive Vice President Mr Balraj Bhanot 3 Vice President Mr KK Gandhi 4 Vice President Mr Sunil Mathur 5 Coordinator cum General

Secretary Mr Suyash Gupta

6 Treasurer Mr Amit Shah Primary Committees were also formed:

S. No Committee. Chairperson 1 Technical Committee Mr Sunil Mathur 2 Training Committee Mr A S Lakra 3 Projects Committee Mr Shishir Agarwal

The meeting began at 10.30 hrs with registration of the delegates and candid interaction of the members over coffee. Following members registered and attended the meet. Participants: S.No

Name Designation Company's Name

1 Mr. S.K.Hazra Managing Director AEGIS Logistics 2 Dr. S.S Thipse Assistant Director Automotive Research

Association In India 3 Mr. S.D Rairikar Project Engineer Automotive Research

Association Of India 4 Mr. S.R Marathe General Maneger,

Product Engineering

Bajaj

5 Mr. A K Goel Sr. Manager - Engg Design

BPCL

6 Mr. A.S Lakra Director

Central Institute Of Road Transport Pune

7 Mr. Robin Parsons President Clean Fueling Technologies - USA

8 Mr. Deep Shankar Roy

Director Chandra Engg. & Mech. Pvt. Ltd.

9 Dr. A.K Jindal Head-Engineer (COE),

Eicher Motors Limited

10 Mr. M Philippe Managing Director Elf Gas India Ltd. 11 Mr. Suyash Gupta Director HT Process Controls Ltd./CFIA 12 Mr. Sunil Mathur Sr. Manager (Auto

LPG) IOC

13 Mr. Naren D. Desai Dy. General Manager, Auto LPG Dispensing Business,

Larsen & Toubro Limited

14 Mr. G.S Gulati Assistant General Manager-aSales Auto LPG Dispensing Business

Larsen & Toubro Limited

15 Mr. Satish Sahastrabuddhe

Dy. Transport Commissioner

Maharashtra

16 Dr. D.S Khatri Manager (Engineering Division)

Maruti Udyog Limited

17 Mr. Shishir Agarwal

Director Minda Impco

18 Ms. Maria Reidpath Industrial Engineer, International Project Manager

NETL,U.S Department Of Energy

19 Mr. John Joseph Vice President Reliance Industries Limited 20 Mr. Bidyut Dutta Deputy General

Manager Marketing Reliance Industries Limited

21 Mr. K.K.Gandhi Director – Technical

SIAM

22 Ms Nancy E. Checklick

Lead Environmental Analyst

Science Application International Corporation, SAIC

23 Mr. K Balakrishnan Regional Director US - AEP 24 Mr. Arup Kumar

Mitra Regional Director US – AEP

25 Ms. Nutan Zarapkar

Dy. Director US - AEP

26 Mr. Ira Dorfman Consultant US - DOE 27 Mr. Pradip K

Rungta Director VIALLE alternative fuel systems

28 Dr. Tapas Kr. Senior West Bengal Pollution Control

Gupta Environmental Engineer

Board

Agenda 1000 hrs Registration and Coffee

1030 hrs Welcome Remarks K Balakrishnan, Regional Director, US-AEP/India

1035 hrs DOE/NETL and USAID: Joined to Work in India

Maria Reidpath NETL

1045 hrs India Clean Transportation Project: LPG Vehicle & Infrastructure Priorities

Ira Dorfman, President eMobility International

1100 hrs India Clean Transportation Project: Reducing Emissions

Nancy Checklick SAIC

1110 hrs IAC organizational updates, Aggregate overall Industry issues and perspectives. Dues Structure, sub committees.

Suyash Gupta Coordinator

1125 hrs Global experiences of similar coalitions; Recommendations to IAC.

Robin Parsons, President Clean Fueling Technologies, USA

1145 hrs LPG importers perspective S. K. Hazra, President, Indian LPG Industry Association.

1200 hrs Automotive Certification Agency’s Perspective

B Bhanot/MK Chaudhari, Director, ARAI, Pune

1215 hrs Oil Companies perspectives J. John, V. President, Reliance Industries Limited

1230 hrs Oil Companies perspectives Sunil Mathur, Sr. Manager Indian Oil Corporation Ltd.

1245 hrs Auto Industry Perspective K K Gandhi, Director-Technical, SIAM

1300 hrs Break for Lunch

1345 hrs Equipment manufacturers/Turnkey Installers perspective

Naren Desai, DGM L & T

1400 hrs Transport Regulator’s Perspective Transport Commissioner, Maharashtra

1415 hrs Kit manufacturer’s perspective Amit Shah. President LPG Kit manufacturers association.

1430 hrs Dissolving the Formation committee Suyash Gupta, Coordinator

1500 hrs Executive committee formation, office bearers with confirmation of stakeholders.

K Balakrishnan, Regional Director, US-AEP/India

1530 hrs Tea/ Coffee Break Office bearers and Executive Committee meet.

1600 hrs Briefing stakeholders about Executive Committee meet, proposed action plan and Vote of Thanks.

Nominated/ Elected President of IAC.

Minutes Mr K Balakrishnan, Regional Director, USAEP, in his welcome address briefly informed the group of the inception of the coalition in Dec 2002 during the visit of American trade delegation to India of interested groups, which comprised of various stakeholders like Equipment suppliers and others.

The group during its week long stay had met with various stakeholders across the nation, during which a need was felt to form a central nodal body, which could assist in scripting an AutoLPG success story in India. Click here to view more details about Dec 2002 trip.

Ms Maria Reidpath followed with her presentation providing a brief of NETL’s activities and the ways in which NETL has been partnering with India not just in LPG but also in CNG!!

Click here to view Maria Reidpath’s presentation. Presentation extracts: DOE/NETL and USAID: Joined to Work in India

• One of DOE’s 17 national labs • Government owned / operated • Sites in:

− Alaska − Oklahoma − Pennsylvania − West Virginia

• More than 1,100 federal and support contractor employees • What We Do:

− Shape, fund, and manage extramural RD&D programs − Conduct onsite science and technology research − Support policy development and best business practices

Since 1982, the U.S. Department of Energy’s National Energy Technology Laboratory (NETL) has provided technical assistance to USAID in India for several cooperative projects in the coal and power generation sectors. Recently, this has been expanded to include five new tasks, of which clean transportation is one.

• A Participating Agency Service Agreement (PASA) is an arrangement between two U.S. government agencies where the participating agency,

such as DOE, performs inherently governmental functions to conduct technical services for USAID.

• A PASA normally includes a public - private partnership agreement to conduct the tasks required by USAID.

• Tasks under a PASA include performance of technical services and procurement activities as well as the monitoring and evaluation of contracted services.

• Respond or contribute to efforts that people in the host country are already trying to do

• Local stakeholders must be consulted to ensure consistency with their values and priorities

• Results of activity provides greater voice and influence to the poor and disadvantaged

• Activity must be transparent to the local stakeholders • Strengthen the capacity of institutions throughout the society to carry

out programs that are responsive to people's priorities • Strengthen and broaden communications among players in the

development process • Approach must unleash innovation and local initiative

Presentation extracts: India Clean Transportation Project:LPG Vehicle & Infrastructure Priorities Ira Dorfman, President eMobility International Ira Dorfman’s presentation dwelled on most of the issues being faced by the Industry to cover a gamut of issues facing the industry which included: n LPG Station Design n Surpass Minimum Demand

Threshold to Assure LPG Station Profitability

n Greater Availability of Original-Equipment- Manufactured LPG Vehicles

n Codes, Standards, Training, Enforcement

n Need to provide Oil Cos. with greater flexibility for station design on

limited footprints n Consideration for multi-fuel dispensing islands, ATMs and convenience

stores n CCOE Petitioned for Reforms n US Site Tours Provided n Model Station Designs Developed n Develop LPG Engine Repower Market for Diesel Vehicles Less Than 5

Years Old n Develop Non-Traditional Markets for Greater LPG Utilization n Expand OEM Availability of LPG Buses, Trucks & Cars n Promote Safe Practices and Incentives for Wider Autogas Use n Choose Diesel Engines with Broad Utilization in India n Recycle Diesel Engine Blocks and Rebuild as LPG Engines with All New

Parts NOT A CONVERSION! n Engines Perform to Level of New Engines:

+Longevity and Reliability of New Engines + Less Expensive than New Engines + Very Low Emissions – exceed all Indian Environmental Requirements n Identify Widely Used Diesel Engines in Bus and Taxi Markets n Ship to USA for Repower as LPG Engines n Allow ARAI to Conduct Emissions & Durability Testing n Field Test Engines in Original Vehicle Applications n Establish US/India Joint Venture to Build & Install These Engines n LPG-powered Gensets n LPG-powered Water Purification Units n LPG-powered Irrigation Pumps n Assist Bus Manufacturers in LPG Engine Development Projects n Assist Taxi Manufacturers in LPG Engine Development Projects n Develop and Help Coordinate Fleet Demonstration Projects n Eliminate Unsafe Use of Domestic Cylinders n Support Implementation of Rules that Require or Encourage the Wider

Use of LPG n Support Safety and Enforcement Training n Support Public Education Programs

Click here to view Ira Dorfman’s presentation. Presentation Extracts:

India Clean Transportation Project: Reducing Emissions: Nancy Checklick, SAIC

SAIC, leads the environmental component of the project, specifically related to greenhouse gas emissions and reductions associated to the transport sector. As part of this effort, SAIC will be hosting a workshop in greenhouse gas project development in the Indian transport sector.

It is important to consider the greenhouse gas emissions and climate change implications from this project because of the large impact that the transport sector has on Indian and global greenhouse gas emissions. In 2002, India ranked number five in the world’s greenhouse gas emissions, and by 2025 is projects to surpass Japan to number four. The transportation sector accounted 27% of global emissions in 2002. While this percentage is higher in developed countries, it is rising fastest in developing countries. The forecast for greenhouse gas emissions in India is greatly impacted by the transport sector. This graph show’s that by 2050, India’s growth in personal transport is projected to rise by 2.3 percent. A large contributing factor to this is India’s 2-wheelers and by 2025, India will rank number four in the world in ownership of 2-wheelers. The Intergovernmental Panel on Climate Change is the leading international scientific body on climate change and their reports predict mean increases in temperature and precipitation in Tropical Asia region. In India, the temperature increase would affect the timing and intensity of monsoons and therefore much of Indian agriculture. Also, the rise in Asian sea levels would flood 50 million Indians annually by the 2080s. This could cause refugee movements, population stress, and political strife with neighboring countries, such as Bangladesh who also has extremely vulnerable coastal populations. These direct effects of climate change, such as changes in water availability, crop yields, and inundation of coastal areas will have further indirect effects on food security and public health.

- The number and types of policies and programs designed to reduce or limit growth in GHG emissions has increased over the last decade

- This reflects the growing importance of mitigating the effects of climate change.

- It is the difference in how governments and institutions prioritize climate change that has resulted in a variety of approaches to deal with it.

- Market-based mechanisms are growing because of their unique attributes, as they can be voluntary instead of regulatory, and often more attractive to some policymakers.

- Carbon Financing offers developers of environmentally-sound projects an opportunity to improve project economics by trading greenhouse gas reductions to entities that need to reduce their own emissions.

- In some cases, the additional funds obtained from carbon financing can make or break the economics of a given project.

- The increased interest in market-based mechanisms is seen in the

growth in greenhouse gas transactions in recent years. - A report by the World Bank showed that the $330 million GHG market in

2003 was expected to double in 2004. - In 2003, over 1,100 GHG transactions accounted for over 300 million

metric tons CO2e - The price of project-based reductions was usually US$0.37 to US$6.37

per metric ton (16 to 277 rupees), as high as US$23 (1000 rupees).

Market Buyers: 41% Japan Market Sellers: 51% Asia So, to answer some of these questions about greenhouse gas markets and opportunities for India’s transport sector to, SAIC would be hosting a 2-day workshop.

• The first day will be geared toward policymakers and executives to understand the context of India’s transport sector in the emerging international greenhouse gas market.

• And to show how Indian companies and organizations in the transport sector can benefit from developing greenhouse gas projects.

• The second day is focused more on the project development process and

meant for engineers and project developers. • This will include training on quantifying emissions and step-by-step

sample scenarios of projects in India.

The planned date is May 18th and 19th of this year, and it will most likely be held in Mumbai.

Click here to view Nancy Checklick’s complete presentation. Organizational updates: Suyash Gupta Suyash Gupta informed the group that the coalition was incorporated as a trust and also updated the stakeholders with the detailed list of activities that the formation committee finalized during its meetings.

Click here to view complete presentation Presentation Extracts: Global experiences of similar coalitions; Recommendations to IAC: Robin Parsons, President Clean Fuelling Technologies Benefits of an Industry coalition:

Proven in many countries to strengthen the market through mutual cooperation

Increases chances for commercial

success by building upon gov’t mandates

Creates a “level Playing Field” by

ensuring equitable standards industry wide

Builds harmony between industry and

government through self policing of national standards.

Funds vital industry projects through formal and equitable dues

structure

Shows a unified commitment to quality & excellence when working with international industry and organizations

Private Industry Coalition Strengths:

• Quick implementation, once agreed to • Direct involvement of stakeholders to mutual benefit • Self policing and funding through dues and voluntary fee

structures Weaknesses:

• Requires absolute cooperation for success Government Management Strengths:

• Absolute authority • No reliance on industry integrity

Weaknesses:

• Insufficient budget funds • Limited size and scope of existing agencies • Difficulties in obtaining regional uniformity and cooperation • Traditionally slow ability of gov’t to respond to the rapid

evolution of market places • Station Designs

• LPG dispenser islands at convenient stores • ATM locations at LPG stations • Multi-fuel stations, CNG, Petrol, Diesel & LPG • Above ground tank installations

• LPG use incentives • Autogas taxation • Conventional fuel taxation • Vehicle installation subsidies

• Safety regulation enforcement • Illegal kit installations • Domestic fuel transfer from cylinders

• Certification of new applications

• More Medium duty (cars & small delivery vehicles) • Heavy duty (busses & large trucks)

• Streamlined vehicle inspection & certification processes. LPG Importers perspective : Shri SK Hazra, Managing Director, Aegis Logistics Ltd., Shri Hazra emphasized the need for Industry to come together to address the issue of illegal fitments on an immediate basis and take even more steps to stop the diversion of the domestic cylinders to AutoLPG market. Another area highlighted was a lack of approved retro fitment centres in most of the cities and also a need to improve/better the existing retro fitment centres to convey a positive impression on the vehicle owners. ARAI : Dr. S.S Thipse, Asst Director

ARAI reassured its support to IAC fully, however, in line with its fuel neutral policy. Full ARAI presentation can be viewed at :

Oil Companies perspectives : J. John, V. President: Reliance Industries Limited In a very detailed presentation and touching on most of the prevalent issues, Mr John shared his vision on what needs to be done by each stakeholder group to ensure that the common goal of promotion of AutoLPG in the country are met. Mr John’s presentation can be viewed at:

Auto Industry Perspective : K K Gandhi, Director-Technical, SIAM

Mr KK Gandhi reinforced SIAM’s view about retro fitment of vehicles to LPG. However he also reassured full support of SIAM to IAC. SIAM’s presentation

Equipment manufacturers/Turnkey Installers perspective: Naren Desai, DGM L & T Mr Desai also touched on most of the aspects of the industry particularly from the infrastructural point of view and paid special emphasis on the quality of fuel being dispensed at the stations, with high sulphur and vapour content.

He also appealed to IAC to submit to CCOE for reduction in the statutory distances which are a major impediment in the number of stations which are able to come up. Among other points he raised:

1) Need for dedicated tankers. 2) Proper sealing of tankers. 3) Proper calibration check and procedures to be adopted. 4) Oil industry should come up with Lubricants designed specially for

LPG vehicles. 5) Kit manufacturers should have even more stringent norms.

Mr Pradeep Rungta, Director Vialle.

Mr Rungta, leading LPG Kit manufacturer also echoed the concerns raised by other stakeholders and urged the oil industry to be more proactive in setting up LPG stations so that the OEs can follow suit.

Dr. D.S Khatri, Manager (Engineering Division) Maruti Udyog Limited while subscribing to the air quality issues raised by other group members, assured full cooperation of MUL to IAC and its resolve to promote environment friendly fuels.

Dr. Tapas Kr. Gupta; Senior Environmental Engineer, West Bengal Pollution Control Board

Dr Gupta highlighted the efforts of West Bengal government to improve air quality levels in Kolkata wherein they have been able to reduce the RSPM levels from 149 to 107 from just Nov to March itself. WBPCB also requested assistance from IAC to help them in their goal of improving air quality in Kolkata and invited all stakeholders to assist Kolkata in charting out a safe, sustainable and effective auto LPG regime.

The meeting concluded with the first meeting of the executive board held immediately after the conference wherein it was decided that the flat dues structure of Rs 1 Lakh proposed would be circulated soon amongst the group members and that the Executive Board would meet on April 20 in Mumbai. Kindly feel free to request any further information about IAC or the meeting proceeds from the undersigned.

Thanking You, Yours sincerely, For Indian AutoLPG Coalition, Suyash Gupta Coordinator and General Secretary www.iac.org.in