 "NGT order on old diesel vehicles flags lack of scrappage policy")
The National Green Tribunal’s (NGT’s) order on Monday to de-register diesel vehicles older than 10 years plying in Delhi has again brought to the fore the difficulties of controlling ageing vehicles in the country without a comprehensive scrappage policy.
Monday’s order, a reiteration of the NGT’s earlier order in April 2015 of stopping the registration of all diesel vehicles in Delhi, might fall apart due to the gaps in the entire process, according to auto industry experts and environmentalists.
For instance, the polluting vehicles might end up getting transferred out of Delhi and there is uncertainty over whether vehicle owners will be compensated for their loss. To address such problems, there is a need for a nation-wide policy for scrapping old vehicles.
Scrapping will promote replacement of old vehicles with modern ones with better emission standards. Many countries have such policies in place. The European Union adopted it as a strategy to beat the economic downturn in 2008.
India does not have such a policy, though an expert committee on auto fuel vision and policy had in 2014 suggested scrapping of old vehicles.
The road transport and highways ministry had last month released a concept paper for its proposed voluntary vehicle fleet modernisation policy, suggesting ways to phase out vehicles older than 11 years. The policy aims at incentivising people to retire their old vehicles that were bought before March 2005 or are below BS-IV standards. According to government estimates, the scheme might take 28 million such units off roads, reducing vehicular emissions considerably.
The concept paper had added vehicular emission can be potentially reduced by 25-30 per cent and oil consumption by 3.2 billion litres a year. The reduction in oil consumption by new vehicles will help save nearly Rs 7,000 crore in oil imports.
According to the paper, this will be made possible through a cut in excise tax by up to 50 per cent at the time of purchase of a new car after scrapping the old one, besides offering fair value for the scrap and discounts by automobile manufacturers. These incentives are likely to reduce the cost of a new vehicle for a buyer by up to 12 per cent.
However, industry sources say the finance ministry might prefer a direct subsidy instead of the sops suggested in the concept paper. The sources added that while there was a lack of scrap units in the organised sector, once the policy is implemented, private entrepreneurs would set up scrapyards.
The car manufacturing industry is ready to deal with any spike in demand for diesel vehicles, since it is currently operating at 60-65 per cent of installed capacity, said Vishnu Mathur, director-general, Society of Indian Automobile Manufacturers (Siam).
Automobile manufacturers support the scrap policy because it raises the market demand for new cars. In Delhi, the marketshare of diesel vehicles is about 45 per cent. As most commercial vehicles are diesel powered, the segment is bound to get a boost in the region. With recent data suggesting slow growth in the automobile sector, this is significant.
There is also a demand for delinking mandatory scrapping altogether from the NGT ruling and all subsequent steps towards environmental protection. S P Singh, senior fellow at the Indian Foundation for Transport Research and Training, said the support for a scrapping policy increased after every slump in car sales.
“The ban will only be effective if scrapped vehicles are strictly replaced by vehicles compliant with the latest Euro VI norms,” said Anumita Roy Chaudhury, head of the air pollution and clean transportation programme at the Centre for Science and Environment.
Estimates show that yearly carbon dioxide emissions from the road transport sector could reach 500 million tonnes by 2020. In Delhi, while the courts have sought to replace diesel vehicles time and again, the lack of clarity as to what happens to a vehicle after being taken off the roads still hampers any permanent solution.
Monday’s order, a reiteration of the NGT’s earlier order in April 2015 of stopping the registration of all diesel vehicles in Delhi, might fall apart due to the gaps in the entire process, according to auto industry experts and environmentalists.
For instance, the polluting vehicles might end up getting transferred out of Delhi and there is uncertainty over whether vehicle owners will be compensated for their loss. To address such problems, there is a need for a nation-wide policy for scrapping old vehicles.
Scrapping will promote replacement of old vehicles with modern ones with better emission standards. Many countries have such policies in place. The European Union adopted it as a strategy to beat the economic downturn in 2008.
India does not have such a policy, though an expert committee on auto fuel vision and policy had in 2014 suggested scrapping of old vehicles.
The road transport and highways ministry had last month released a concept paper for its proposed voluntary vehicle fleet modernisation policy, suggesting ways to phase out vehicles older than 11 years. The policy aims at incentivising people to retire their old vehicles that were bought before March 2005 or are below BS-IV standards. According to government estimates, the scheme might take 28 million such units off roads, reducing vehicular emissions considerably.
The concept paper had added vehicular emission can be potentially reduced by 25-30 per cent and oil consumption by 3.2 billion litres a year. The reduction in oil consumption by new vehicles will help save nearly Rs 7,000 crore in oil imports.
According to the paper, this will be made possible through a cut in excise tax by up to 50 per cent at the time of purchase of a new car after scrapping the old one, besides offering fair value for the scrap and discounts by automobile manufacturers. These incentives are likely to reduce the cost of a new vehicle for a buyer by up to 12 per cent.
However, industry sources say the finance ministry might prefer a direct subsidy instead of the sops suggested in the concept paper. The sources added that while there was a lack of scrap units in the organised sector, once the policy is implemented, private entrepreneurs would set up scrapyards.
The car manufacturing industry is ready to deal with any spike in demand for diesel vehicles, since it is currently operating at 60-65 per cent of installed capacity, said Vishnu Mathur, director-general, Society of Indian Automobile Manufacturers (Siam).
Automobile manufacturers support the scrap policy because it raises the market demand for new cars. In Delhi, the marketshare of diesel vehicles is about 45 per cent. As most commercial vehicles are diesel powered, the segment is bound to get a boost in the region. With recent data suggesting slow growth in the automobile sector, this is significant.
There is also a demand for delinking mandatory scrapping altogether from the NGT ruling and all subsequent steps towards environmental protection. S P Singh, senior fellow at the Indian Foundation for Transport Research and Training, said the support for a scrapping policy increased after every slump in car sales.
“The ban will only be effective if scrapped vehicles are strictly replaced by vehicles compliant with the latest Euro VI norms,” said Anumita Roy Chaudhury, head of the air pollution and clean transportation programme at the Centre for Science and Environment.
Estimates show that yearly carbon dioxide emissions from the road transport sector could reach 500 million tonnes by 2020. In Delhi, while the courts have sought to replace diesel vehicles time and again, the lack of clarity as to what happens to a vehicle after being taken off the roads still hampers any permanent solution.