Clear the air

Govt should remain firm on auto emission norms deadline

That pollution in Indian cities has reached unacceptably high levels has been evident to all for a while. No matter which way one measures it, most studies suggest that vehicular pollution is one of the key contributors to the precipitous decline in air quality. A recent study on Delhi’s pollution, conducted by IIT Kanpur, ascribed about 28 per cent of the pollution to vehicular emissions. Another study by a team of researchers from IIT Delhi identified pollution as the cause of tens of thousands of deaths. In response, the government had initiated the Bharat Stage IV (BS-IV) emission standards in April 2010, which were supposed to come into effect across the country from April 2017. This shift will, in turn, require cleaner fuel quality and improvements in engines and exhausts. 

However, it is disconcerting that most players in the automobile sector are now asking the government to relax the deadline. This not only reflects poorly on the industry’s commitment to improving air quality but also does little justice towards any company, such as Bajaj Auto, which might have made itself compliant well in time. Last year, the government, automobile manufacturers, refineries and oil-marketing companies agreed that India would move towards improved fuel and vehicle standards by early 2020 in the form of BS-VI standards, which are similar to Euro VI standards. Reportedly, hard lobbying by automobile manufacturers delayed an earlier deadline. 

There are two related issues in this regard. The first and foremost question is: How soon will India be able to reduce pollution in its cities? It goes without saying that better air quality can be achieved significantly faster by adopting better emission standards such as BS-IV. Second, beyond the specific issue of emission standards, it is important to build the credibility of regulations governing sustainable environmental standards. It is, therefore, essential that such regulations are taken seriously both by the industry and the government. The industry’s tendency to seek a delay in implementation is flawed for three reasons. First, the overall demand for private vehicles is quite inelastic in a high-growth market like India and, therefore, any increase in cost that affects all producers equally will not significantly impact industry-level sales in the long run. Second, vehicular pollution, irrespective of the type of vehicle or fuel, significantly worsens the health of all Indians. Lastly, being at the frontline of global standards will improve the ability of Indian automobile sector to compete globally. The automobile sector is, therefore, scoring a self-goal. 

In fact, given the alarming rise in pollution levels, it is time for the government to advance the BS-VI deadline from 2020 to 2019 or even earlier. Europe has achieved the same result facing stiffer timelines. The industry’s tendency to lobby for delays can be checked if deadlines are staggered. For instance, the deadline of BS-IV norms applied to sales of older technology vehicles, of which reportedly there are large unsold inventories with manufacturers and distributors. Obviously, such a stock will become worthless if the environmental norms are applied in one go. A staggered deadline instead will allow companies to gradually shift production to better engines and obviate a situation where producers are stuck with unsold inventory based on older technology.