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The advent of April 2005 saw the introduction of Bharat Stage-III (akin to Euro-III) norms in 11 major Indian Cities for all class of vehicles and 74 dB(A) vehicle pass by requirement as per EEC homologation norms for M1 class of vehicles across the country. This paper summarizes development methodology investigated and adopted for 3.0 lit direct injection, naturally aspirated diesel engine with cam driven mechanical fuel injection equipment on multi utility vehicle. This lean technical package compared to the trends of using turbocharger, intercooler and electronic common rail system was conceived to meet the requirement of low cost product offering. The base engine was a derivative of commercial vehicle engine with design features posing significant challenge to achieve the impending regulatory requirements.