Nov 05, 2016 05:01 PM IST | Source: CNBC-TV18

Meeting BS-VI norm deadline a challenge: Honeywell India

We already have existing refineries but to produce BS-VI fuel we would need to consider what the refinery is already producing and what additional they will have to do to come with the new fuel, said Vikas Chadha, President, Honeywell India.

The move to Bharat Stage VI emission norms is a race against time says, Honeywell India's President Vikas Chadha. The government has given 2020 as the deadline to move from BSVI to BS VI emission norms.

In a first interview after being appointed as the company’s Chief told CNBC-TV18's Shereen Bhan that there is no 'one size fits all' solution to the challenges around implementing BS-VI norms.

We already have existing refineries but to produce BS-VI fuel we would need to consider what the refinery is already producing and what additional they will have to do to come with the new fuel, said Chadha. So transition cost will be different for different refineries. “Meeting the deadline will be a challenge,” he said.

Shifting to the new norms will call for investments and upgradation of technology, adding new units etc.

Refiners, petrochemical manufacturers and gas processors have a new set of tools to optimize plant performance using the Industrial Internet of Things (IIoT). Honeywell has introduced a new software-based service from its new Connected Performance Services (CPS) business that combines Honeywell’s deep process knowledge, design expertise and understanding of catalysis with its next-generation software platforms.

The cloud-based offering provides applications that address a variety of site challenges, including better asset utilization, unplanned downtime, energy efficiency and gaps in expertise, particularly as plants are becoming more sophisticated, and many are losing their most experienced engineers to retirement.

Below is the verbatim transcript of Vikas Chadha’s interview to Shereen Bhan on CNBC-TV18.

Q: What are the challenges towards the implementation of BS-VI norm?

A: India is perhaps one shining star in the global oil and gas environment given the way we are. We don't have too much of upstream with slazzy downstream business and the mandate is for the refineries to provide fuel to the automobile manufacturers. It will call for investment, it will call for the upgrades of the existing units, it will call for adding some new units.

Q: Do you think that the time is enough for the transition to be made because that is the big worry. The auto companies' fear is that the refinery end will not be ready. You think that the transition time is enough?

A: Yes, it is challenging, there is no doubt about it because we have less time with us and we have to move fast. We are seeing some traction, we are seeing some refineries are moving faster, but still I agree with you. It will be a challenge. It may move a little bit here and there but at the end of the day we will get there. So, it is a cause for some upheaval in the oil and gas environment in the country.

Q: Typically what does the transition really involve both in terms of just the cost of upgrading technology and the time to switch over as well?

A: No particular answer as such because the point is that we already have existing refineries with us. So, to produce BS-VI fuel we would need to consider what the refinery is already producing and what additional unit do we need to come up with. So, it is going to be different for different refineries. So, there is no one such answer which is going to come but fortunately we understand this technology very well. All we hope is this business actually understands it and we engage with the customer from the grassroots level, from the absolutely start level. So, we are engaging with them to understand how they will produce that.

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