 "Red light for high-end diesel cars in Delhi")
The Supreme Court on Wednesday imposed a ban on the registration of diesel cars with an engine capacity of over 2,000 cubic centimeters (cc), and gave a series of directions to improve Delhi’s air quality.
January 1 to March 31 next year are going to be tough for diesel car makers and their dealers in New Delhi and other areas of the National Capital Region (NCR), such as Gurgaon, Noida and Faridabad.
The court also asked cab aggregators such as Ola and Uber to shift to compressed natural gas (CNG) before March 1, 2016, and doubled the environment compensation charge on loaded commercial vehicles entering Delhi. Now, light commercial vehicles will have to pay Rs 1,400 and heavy ones Rs 2,600 to pass through the city on their way to other states. Empty, they will have to pay Rs 700 and Rs 1,300, respectively.
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Also, trucks older than 10 years will not be allowed to enter the city. States neighbouring Delhi — Uttar Pradesh, Haryana and Rajasthan — have been directed to ensure that commercial traffic for destinations other than Delhi use alternative routes.
In response to a bunch of writ petitions, the court, while passing its judgement, said the rich used diesel cars and are “prone to cause more pollution”. The court order triggered a fall in Mahindra & Mahindra’s stock price, which closed the day at Rs 1,218.90, down 5.44 per cent. About two per cent of the company’s sales volume comes from cars that will get impacted by the decision. Mercedes and Toyota, who also have a large range of diesel cars, are not listed in India.
Manufacturers reacted by saying they would wait for a holistic view on improving the air quality in Delhi at the end of the three-month ban.
“The company hopes that at the end of the interim period the judiciary and regulators would look at the impact of these measures and take a holistic decision,” said a Mahindra & Mahindra statement.
Vikram Kirloskar, vice chairman, Toyota Kirloskar, said: “We must take a comprehensive view of various factors causing pollution to improve the air quality.”
From the Toyota stables, Innova, Fortuner, Camry and Land Cruiser sales will be affected.
Manufactures also claimed the decision will impact future investment plans. A Mercedes-Benz India spokesperson said the ban creates an “environment of uncertainty and will severely impact our expansion plans.” Mercedes’ entire diesel product portfolio is above the 2,000-cc capacity mark. About 15 per cent of its sales will be hit.
Society of Indian Automobile Manufactures (Siam) said the order has been passed after “totally ignoring the findings of the summary of the recent study on source apportionment for NCT of Delhi shared with the court, which mentions that the vehicles are responsible for only 20 per cent of the pollution in Delhi, out of which only 14-15 per cent is attributable to passenger cars. This makes the overall pollution load of passenger cars a miniscule number of just three per cent.”
While car manufacturers rued the decision, others had reasons to celebrate. Indraprastha Gas, the sole CNG retailer in New Delhi, gained 6.79 per cent on the BSE to close at Rs 500.35. CNG cylinder maker Everest Kanto’s stock zoomed to a 52-week high of Rs 15.01, up 14 per cent from its previous close.
The court also prohibited the burning of garbage and directed the Delhi government and the municipal corporations to implement the existing rules which regulate construction activities producing dust. Regarding the dirt and dust on the pavements and roads, the court ordered that “immediate steps should be taken for repair of pavements”. Immediate steps also have to be taken where there are none and the plan to vacuum clean them has to be implemented by April 1.
