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Battle over ban on two-stroke three-wheelers By Thushara
Matthias David Peiris
Motor Company Ltd, the biggest importer of two-stroke three-wheelers,
has threatened to take legal action if the government goes ahead
with the move. But the company maintained that a ban on the vehicles
would not make a major dent in their profits. However Managing Director Sumith Cumaranathunga said that they feel they have an obligation towards those who can afford only the two-stroke auto-rickshaw and that they will protest against any unfair policy decisions. He said that what is wrong was the intention to ban a certain technology based on inaccurate studies. The controversy started with the Ministry of Environment and Natural Resources seeking Cabinet approval to ban the import of two-stroke engine three-wheelers. The reason for
the proposed ban appears to be that the three-wheelers emit unburned
fuel. The Ministry of Transport had recommended the ban after a
study by the Air Resource Management Centre of the Ministry of Environment
and Natural Resources. Cumaranathunga
said that they learnt about the ban through the press and had not
been contacted on the issue previously. David Peiris Motor Company
wrote to Prime Minister Ranil Wickremesinghe and the Ministers of
Environment and Transport and the Director General of the Central
Environmental Authority. They pointed
out that two-stroke engines are just a mere 11.7 percent of the
entire vehicle population in the country (as at December 31, 2000),
that conventional two-stroke engines of older designs produce a
high amount of gasoline vapour (hydrocarbon emissions) but are no
longer produced in India and that particulate matter (PM or air
pollutants) emitted by two-stroke engines are mainly due to unburned
lubricating oil. It is fairly well established that emission levels are strongly influenced by the quality and quantity of lubricating oil used and the state of maintenance of the engine. Dr. B.M.S. Batagoda, director, Environment Economics and Global Affairs of the Air Resource Management Centre, in his response to the submissions by David Peiris Motor Company pointed out several factors which made them recommend the ban on two-stroke auto-rickshaws. He said two-stroke engines typically have low fuel efficiency with 15-40 percent of the fuel-air mixture escaping from the engine through the exhaust port, which increases the hydrocarbon, visible smoke and particulate matter emissions. He also pointed out the economic benefit to the general public and the government, saying that improved air quality reduces health costs. Two-stroke engine vehicles also cause more air and noise pollution than four-strokes. Vehicles with
four-stroke engines are beneficial for the vehicle owners as their
fuel efficiency is about five km per litre higher than two-stroke
machines, Dr. Batagoda said. New three-wheelers
have been fitted with catalytic converters, which reduces harmful
substances in the exhaust gases. But these have to be replaced twice
a year to have reasonable emissions and are therefore costly, Dr.
Batagoda said. Two-stroke engines need good maintenance to keep
the emissions low but in Sri Lanka the vehicles are poorly maintained
in order to save costs, he added. In their response,
David Peiris Motor Company maintained there were inaccuracies in
Dr. Batagoda's position. Cumaranathunga said that the catalytic
converter is an issue that is not applicable to Bajaj two-stroke
three-wheelers because they do not usually have to be replaced and
are covered by the manufacturer's warranty in case they do. Under the European Union Standard for Automotive Mass Emissions, 97/24/EC Chapter 5 that came into effect on April 1, 2003, emission limits are 7.0g/km for CO (Carbon Monoxide), 1.5g/km for HC (Hydrocarbon), 0.40g/km for NOx (Nitrogen Oxide). This is applicable to any kind of three-wheeler - four-stroke and two-stroke. DPMCL said that
the results of emission tests on Bajaj three-wheelers conducted
by TUV India, an independent testing authority, are 0.77g/km for
CO, 1.14g/km for HC and 0.05 g/km for NOx. This meant that they
are within the standards. For the in-use fleet the standard set
by the EU under Euro 2 is six percent by volume for CO and 9000
ppm (parts per million) of HC. According to
field tests carried out by DPMCL, the sample emission readings were
4.08 percent by volume for CO and 8216 ppm by volume for HC. The
Central Environment Authority (CEA) has also carried out a field
test, which David Peiris Motor Company says is incorrect, as the
probe had only been inserted half way into the tail pipe (exhaust
tube). The spokesman for the company explained that their field
tests were carried out inserting the probe 300mm into the tail pipe,
with the aid of an extension where necessary, as recommended by
the supplier of the testing equipment and endorsed by the manufacturer
of the vehicle, whereas the CEA tests were carried out by inserting
the probe 150mm or less. According to
a recent meeting of all stakeholders, the emission levels for the
in-use fleet is stated as six percent by volume for CO and 9000
ppm for HC as the standard for Sri Lanka in the future. These levels
are still being negotiated. David Peiris
Motor Company's Cumaranathunga said that if they do also conform
to this newest standard, they could not understand the reason behind
the need to ban the importation of two-stroke three-wheelers. Dr. Batagoda
said that the Environment Ministry has no intention of banning the
two stroke three-wheelers immediately but that the Transport Ministry
has begun to take necessary action to implement the ban. Transport Ministry
Deputy Director Planning Dr. D.S. Jayaweera said that a proposal
to ban the importation of two-stroke auto-rickshaws is to be submitted
very shortly to the Cabinet. The fleet of auto-rickshaws already
in use could be used till their lifespan is over. Jayaweera said he was concerned about the controversy. He said that it was not the numbers that matter. "It is true that they do conform to the standard. But, what about the emissions? How can one guarantee proper maintenance? The health hazards are much more important to the country." He also said that cities like New Delhi, Dhaka and Kathmandu have banned two-stroke auto-rickshaws. If the manufacturing countries themselves have banned the vehicles why can't Sri Lanka, which neither manufactures nor assembles them, impose a ban, he asked. Dr. Batagoda pointed out that when Sri Lanka wanted to ban leaded petrol in 1992, there were protests. But when countries all over the world banned it the different groups were convinced and they were able to ban it in July last year. He also said that when Bangladesh and certain parts of India have banned two-stroke three-wheelers, it is obvious that Sri Lanka should take the same measure. But as there is a lot of protest at the moment, the Environment Ministry is focusing on creating awareness among the interest groups and arriving at a common understanding. David Peiris
Motor Company said it was incorrect to ban the technology of two-stroke
engines. There are nearly 135,000 two-stroke auto-rickshaws in Sri
Lanka. Cumaranathunga said now that they have tried raising the
issue at the proper forum in the correct manner, if an unfair policy
decision is taken there will be no other option but to take legal
action. "We hope that the national policy makers will ensure
justice and fairplay in the formulation of a non-discriminatory
policy framework to regulate automotive emission in Sri Lanka." The Transport
Ministry's Jayaweera said, "We do not want to harass any party.
Neither David Peiris Motor Company nor the public. Our duty is to
safeguard the environment and air quality. Therefore, we are considering
a proposal to give tax reductions for the importation of four-stroke
three-wheelers to reduce the price difference between the two types.” This would
enable David Peiris Motor Company to keep their market and also
at the same time help those who can only afford three-wheelers,
and most of all, protect the air quality in Sri Lanka. The price
difference between two-stroke and four-stroke auto-rickshaws was
a mere Rs. 10,000. Cumaranathunga said even if there's a tax concession they would still maintain their opposition to the move as it is not only the cost that matters. He pointed out that the operational and maintenance cost is higher for four-stroke three-wheelers. "Each technology has its own merits and demerits. But the problem here is the banning of a certain technology based on a minute criteria that suits certain bureaucrats." India's anti-AIDS drugs look for more takers BOMBAY (Reuters)
- Y.K. Hamied, chairman of Indian drug firm Cipla , is upset there
are few takers for his dirt-cheap triple drug cocktail to combat
AIDS symptoms. "The sad
thing is that in 2001 there were 10,000 patients in Africa on the
cocktail but two years later there are only 34,000 when there are
millions suffering," the silver-haired Hamied told Reuters
last week. He rocked the pharma world in February 2001, when he
started offering a cocktail of anti-AIDS drugs called anti-retrovirals
(ARVs) for less than $1 a day. But there is
little demand. The drugs, which don't cure the disease but slow
down its progress, are too expensive for most people to buy, particularly
in badly-affected sub-Saharan Africa. And their governments are
either too cash-strapped to organise mass treatment or lack the
political will to do so. "Countries
simply do not have enough funds. There are many badly-affected countries
whose drug budgets are less than $2 per head per year," said
Hans Hogerzeil, co-ordinator of medicines policy in the World Health
Organisation's (WHO) department of essential medicines in Geneva. At the same
time, AIDS patients in rich countries can't buy the generic drugs
as their governments uphold patent rights of the global drug giants
that invented the anti-AIDs cocktail's ingredients. Still, other
Indian generic drug firms are working on getting their plants approved
by international drug authorities. And Indian drugmakers such as
Ranbaxy Laboratories , Aurobindo Pharma and Hetero Drugs already
supply anti-AIDS drugs at similar low prices as Cipla. The patents
for the drugs in Cipla's Triomune cocktail -- lamivudine, stavudine
and nevirapine -- are controlled by GlaxoSmithKline , Bristol-Myers
Squibb and Germany's Boehringer Ingelheim respectively, but Indian
laws allow firms to produce them as long as they use different manufacturing
processes. Hamied's gesture of offering drugs at one-thirtieth the
multinationals' prices has caused them to drop prices albeit reluctantly.
The WHO estimates prices are down 95 percent, but they are still
nowhere near generic firms' prices. Generic supplies are hindered
in countries that uphold intellectual property rights if an innovator
has registered patents for its drugs there. Look to Asia for top returns this year Investors with
courage to move back into shares are being urged to look outside
Britain for the best returns. Experts are tipping Asia as the region
with the best growth potential. Investors in
Asia were unable to shelter from the stock-market downturn last
year. Disenchantment with the speed of a global recovery meant that
the markets ended the year down. Over the past
12 months the average Far East fund has dropped 24%, according to
Standard & Poor's compared with a fall of 28% for the average
UK fund. But experts believe the Asian markets could be among the
best homes for your money over the coming year. Nicola Horlick
of SG Asset Management, a fund manager said: "People are realising
that the cost of low inflation is low equity returns. So we need
to find companies that can produce higher growth rates and boost
our investment returns. It is difficult to find business that are
capable of such growth in mature markets but there are plenty of
opportunities in the Far East." Peter Oppenheimer,
global strategist at Goldman Sachs, the investment bank, has nominated
Asia as his favoured region for 2003. He said: "The
Far East didn't suffer as much when the technology bubble burst
in 2000 because it had already gone through its own corporate crisis
in 1998. We expect to see the strongest economic growth in Asia
this year." Money is flowing
into the region from overseas, so most Asian economies are in surplus.
Their proximity to China is also good news for growth. Robin Griffiths
of HSBC said: "Once confidence returns, investors will be prepared
to look forward three years instead of three months. That long-term
view is likely to be positive for the Pacific region." But there are
risks. Brian Dennehy of Dennehy Weller and Co, a financial adviser,
said: "Consumer confidence has dropped sharply in Amercia,
the major destination for Asian exports. The fall may have been
prompted by the prospect of war, but if the American economy takes
a turn for the worse it is difficult to see how Asia would emerge
unscathed." Investors should
also remember that stock markets in the region tend to be less well
regulated than in the West, accounting standards are usually less
rigorous and countries may suffer political instability. But as part
of a balanced portfolio, Asia, or other overseas markets could reduce
risk. If British shares are falling, you could profit from growth elsewhere in the world. The diversification
benefits of investing in Asia are particularly good because the
markets are not highly correlated with their western counterparts.
Whereas Britain, America and Europe tend to move up and down together,
Asian markets are more independent. Experts are
also backing Russia and Eastern Europe in 2003. Mick Gilligan
of Killik and Co a stockbroker, said: "Eastern Europe has been
strong of late and I see no reason why this will not continue. Currencies
have stabilised as countries aim to join the eurozone, and the economies
are also benefiting from outsourcing from west Europe." John Chatfeild-Roberts
of Jupiter, a fund manager, said: "We think Eastern Europe
could do even better than Asia." Some experts have also tentatively begun to suggest that it could be time to take a gamble on Japan. However, most advisors want to see more corporate and economic restructuring before they feel comfortable recommending Japan again. Gilligan said:
"We are neutral about Japan. If still has a number of problems
- but if there is a rally, it is likely to be big." Experts
are also nervous about continental Europe because of economic weakness.
Particularly in Germany. The US market is expected to rally if a
war with Iraq is over quickly. However, most experts still think
that US shares look too expensive. (Courtesy -
Sunday Times, UK) |
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