Approved fuel list across Indian states and UTs: What you need to know

As India battles the air pollution crisis, fuels used across industries, homes and transport systems play a critical role. However, not all fuels are equal — some emit significantly more pollutants than others. That is why many states and Union territories (UT) have approved fuel lists to restrict polluting fuels and promote cleaner alternatives.

But how consistent are these efforts across the country? Do all states and UTs have clear mandates and what informs their decisions on which fuels to allow? 

Fuels with high air pollutant emissions during combustion

Rationale behind the approved fuel list

The need for clean fuels was recognised as early as in the 1980s. The Air (Prevention and Control of Pollution) Act, 1981 made it clear that the state government can prohibit the use of high-emitting fuels as a pollution control measure and enforce the same.

Two decades later, in 2001, the former Environment Pollution Control Authority (EPCA) elucidated the definition of clean fuels in its submission to the Supreme Court. It stated that ‘the definition of clean fuels must be considered in the context of the quality of available fuels, the availability of emission control technologies, the prevailing environmental conditions, and the existing knowledge of the health effects of air pollutants’.

EPCA also emphasised that hydrocarbon (HC)-based fuels (diesel, gasoline, kerosene, coal, natural gas) cannot be considered as clean fuels due to their chemical composition. However, it mentioned that some HC-based fuels, such as LPG, CNG and propane, are relatively cleaner with lower emissions due to their inherent chemical properties. Furthermore, non-HC-based options, such as solar energy and renewable-based electricity, can be considered clean fuels as they do not emit harmful pollutants.

During 2017-2019, the Supreme Court and the Honourable National Green Tribunal issued a series of orders banning and restricting the use of pet coke and furnace oil, except for specific industrial operations.

This was a classic example, wherein pet coke, despite having a lower ash content and higher calorific value (7,800-8,400 kCal / kg) than Indian coal (4,500-5,000 kCal / kg) and imported coal (6,500-7,500 kCal / kg), was restricted due to its high emission potential (30-40 per cent more CO2 emissions than coal, high sulphur content of 4-7.9 per cent, and high concentration of toxic heavy metals such as vanadium, chromium, sulphur, and selenium).

States were advised to formulate fuel guidelines for the use of pet coke and furnace oil, following which, specific guidelines, such as those pertaining to a list of alternative fuels, were formulated by the states and UTs. The following were also included in the guidelines:

• Clean fuels that could be used as substitutes

• Definition of industries where these fuels could be used as feedstocks

• Advice on implementing necessary emission control measures

This laid the foundation for state- and UT-level efforts to define and enforce the use of cleaner fuels in line with environmental priorities.

Current scenario

Policy orders regulating the use of pet coke and furnace oil — with Maharashtra, West Bengal, and Jammu & Kashmir listing alternative fuels — are available across all states and UTs. However, the standard list of approved fuels or an industrial fuel policy has been notified separately only by eight states and one UT (Goa, Gujarat, Haryana, Rajasthan, Uttarakhand, Delhi, Odisha, Himachal Pradesh and Punjab).

The first approved fuel list was notified for the National Capital Territory (NCT) of Delhi as early as in 1996. This was later amended and re-notified in 2018. Building on this, the Commission for Air Quality Management (CAQM) released an approved fuel list in 2022 for the entire National Capital Region (NCR; applicable to Delhi and NCR districts — 14 in Haryana, two in Rajasthan and eight in Uttar Pradesh).

The CAQM fuel list is a good example of the adoption of the ‘airshed’ approach.

In NCR, the CAQM list (more stringent) prevails over the state list. While there was no clear scientific rationale and methodology presented for any of these lists, the CAQM list for NCR identified commonly utilised fuels across states, mapped corresponding available cleaner alternatives and conducted expert consultations. 

Approved fuel list across India

Variations in permitted fuels

Interestingly, the types of fuels permitted under the approved fuel lists vary. For instance, the Delhi fuel list allows comparatively cleaner fuels and fully prohibits polluting fuels such as coal, pet coke, furnace oil and kerosene. It permits the use of low-sulphur coal only in thermal power plants (TPP).

The CAQM list mentions that the use of biomass pellets and briquettes, metallurgical coke and low-sulphur fuels such as LSHS is not permitted within the NCT of Delhi, but can be used outside the geographical limits of Delhi for specific industrial processes. However, there are states where polluting fuels are still allowed.

For instance, kerosene is still allowed in the domestic sector and is distributed under the public distribution system, indicating a policy lacuna in the presence of schemes such as the Pradhan Mantri Ujjwala Yojana that aims for a cleaner LPG supply. 

Indicative banned & permitted polluting fuels in the states / UTs with an approved fuel list / policy

Way forward

While all states must formulate an approved fuel list, the states that have not done so can begin by adopting the Delhi / CAQM list as a baseline and tailor it as per their fuel availability, industry type and air quality goals.

Further, to phase out polluting fuels and effectively regulate fuel usage across sectors, the following steps can be adopted by states and UTs: 
• Develop a suitable fuel list for each state customised to their unique requirements, such as availability, costs, overall impact on air quality, and issues with industrial process optimisation
• Commission studies to understand the emissions from different fuels and the financial trade-offs with cleaner alternatives. Identify the types of emissions from different fuels and quantify them to find suitable, cleaner alternatives
• Define the types of fuels and their usage across various sectors, as well as the requirements for air pollution control devices (APCDs) for specific fuels, while compiling a catalogue of approved fuels. For instance, specifying the use of BS VI diesel and petrol in the transport sector and low-sulphur coal in conjunction with APCDs in TPPs
• Prioritise the gradual elimination of heavily polluting fuels while promoting the use of clean energy. Instead of permitting polluting fuels under certain conditions, they should be replaced with cleaner alternatives such as bioethanol, green hydrogen, and biomass pellets, along with the necessary technological support to enable the transition
• Regularly review and update the approved fuel list to reflect advancements in cleaner fuel technologies, changes in availability, and changing priorities

In conclusion, while there is no ideal ‘approved fuel list’, the use of fossil fuels, in any form, is harmful. As India continues to grow, trade-offs need to be considered between ideal fuels and development. Further, a science-based, regionally adapted and progressively updated approach will be essential to accelerate the transition to cleaner and more sustainable fuel alternatives.

Charu Tyagi is a senior associate and Geeta V Hegde is an analyst with the air quality team at the Center for Study of Science, Technology and Policy (CSTEP), a research-based think tank. Views expressed are the authors’ own and don’t necessarily reflect those of Down To Earth.

Final summary: India's air pollution crisis has prompted states and Union territories to approve fuel lists, aiming to restrict polluting fuels and promote cleaner alternatives like LPG and CNG. While some regions have clear mandates, others show inconsistency. The guidelines, evolving since the 1980s, emphasise the need for low-emission options, banning high-emission fuels such as pet coke and furnace oil.