To tackle the Delhi pollution menace, the Supreme Court (SC) is looking at a multipronged strategy. The final order for the same will come out tomorrow around 10.30 am.
The proposals so far are that the apex court is mulling at doubling the environment compensation charge on commercial vehicles entering Delhi. In the month of October, the SC had slapped the environment compensation charge (ECC) of Rs 700 and Rs 1300 depending the category of the vehicle entering the capital. Given the pollution concerns, the SC is now considering the drastic measure of doubling these charges to around Rs 1400 and Rs 2600.
The apex court is open to the ideal of a partial ban on registration of diesel vehicles for a three-month pilot period wherein the threshold will be set at 2000 cc. This means diesel vehicles with engine capacity of higher than 2000 cc could possibly face a ban on registration for the coming three months.
Moreover, specifics of the order could also entail further screws being tightened in terms of alternate rules being looked and more restrictions being put on vehicles entering Delhi.
Another important point the Apex court is considering is remedies that are available with respect to cabs that are plying in the capital city which could directly affect cab companies like Ola, Uber in terms of the fuel that they are likely to use.
Reacting to the news Prakash Diwan of Altamount Capital said, it looks like the focus is on getting the SUVs and gas guzzlers out which means Mahindra and Mahindra’s Scorpio and other variants above 2000 cc would not be allowed registration, which smaller cars like Swift, Swift Dezire could make the grade. So impart would be more on M&M than Maruti and Tata Motors.
Also if the order comes in from the Supreme Court, the ban would be taken seriously, says Diwan adding that with the ECC in place, it would put curb people from bring in outside vehicles into Delhi.
Jagdish Khattar, CMD, Carnation Auto says more than damaging the sector, this confusion is worst and with regards to ban on diesel cars over 2000 cc, he says the contribution of these cars to total sales is less, so may not improve the overall situation.
The impact will differ for each company but the overall apprehension will be that people will avoid diesel. Instead, if the rate differential between diesel and petrol is reduced, it would naturally bring down the demand for diesel vehicles, says Khattar.
However, Khattar hopes for a clear picture to arise tomorrow. He is also worried that if there is a spillover effect of this decision to other cities then buyers will become cautious and manufacturers will suffer a lot because they have made huge investments.
According to car markets, diesel cars account for less than 7 percent of total number of vehicles in Delhi. The cars are BS IV (Bharat Stage Emission) complaint and the ban order would hurt auto sector, investments, say car manufacturers.
Bharat stage emission standards are emission standards instituted by the Government of India to regulate the output of air pollutants from internal combustion engine equipment, including motor vehicles. The standards and the timeline for implementation are set by the Central Pollution Control Board under the Ministry of Environment & Forests and climate change.
However, the Supreme Court reasoned that rich people cannot be allowed to travel in luxury vehicles running on subsidied fuel. It said the decision on ban can’t wait because lives are at stake, while the automakers were busy worrying about money.
For the entire discussion, watch video
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