CNG switch order: Ola, Uber say they'll be ready in a month

They and observers note burden of change inevitably in individual driver-owners, want help from govt; Meru wants relief only for smaller operators

Though the Supreme Court has extended the deadline by a month for private taxi operators in the Delhi-National Capital Region to switch from diesel to compressed natural gas (CNG), this time might not suffice for the companies to have their fleets converted, watchers said.

Uber and Ola, the major taxi app aggregator services, said they were working on revamping their entire fleet in the region but, experts note, converting diesel cars into CNG would mean a huge cost for companies in a short period. Mostly, drivers will have to bear the cost, they said.

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It takes around Rs 40,000 to convert a petrol car into CNG and Rs 75,000 to Rs 1 lakh for one with a diesel engine.

Bengaluru-based Ola said it had been working over the past month to help diesel taxi owners across Delhi-NCR, by highlighting their ‘plight’ to the Environment Pollution Control Authority (EPCA) and the relevant government agencies.

An EPCA official said Ola had requested the transport departments of Delhi, Haryana, Uttar Pradesh and Rajasthan to help diesel taxi owners with refunds to road tax paid in the past year and in relaxation of permit transfer costs, presently around Rs 6,000.  

“We are happy that the Supreme Court has considered their (drivers) constraints. We have been simultaneously helping driver partners in Delhi-NCR buy new CNG cars, with attractive discounts and and easy loans,” said Deep Singh, business head, north, at Ola. The company has around 26,000 vehicles on CNG in the NCR.

On Thursday, radio taxi operator Meru Cabs said the extension should only be for small taxi operators, not for companies such as Ola and Uber. “Major taxi aggregators they have the means and funds to run all-CNG fleets in the city,” said Siddhartha Pahwa, group chief executive officer.

The company has 3,000 taxis on CNG in Delhi-NCR and 2,500 in Mumbai. It also plans to start in Bengaluru.

Uber stated on Thursday that it was already complying with the earlier Delhi high court order regarding CNG cars, saying it connects riders on its platform to only CNG cars for trips within Delhi.

“Since October 2015, we have extensively pushed the adoption of CNG cars through significant measures and investments providing incentives and special offers worth over Rs 50 crore, resulting in the addition of well over 11,000 CNG cars in the past five months. We welcome the additional consideration given by the Supreme Court,” said Gagan Bhatia, general manager, Uber North.

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WHAT’S THE CATCH?

• These firms say they are working towards revamping their entire fleet in Delhi-NCR region and complying with the court guideline
   
• Experts, however, say that converting diesel cars into CNG would make companies incur huge costs in a short period
   
• It takes around Rs 40,000 to convert a petrol car into CNG and Rs 75,000 to Rs 1 lakh for one with a diesel engine