Respecting the recent Supreme Court order and NGT banning the registration of private diesel vehicles above certain engine capacity, FICCI today emphasized the need for balanced and holistic measures to be taken based on authentic studies so that interest of every stakeholder is given due weight age.
FICCI mooted immediate introduction of vehicle replacement policy to end the uncertainty surrounding the industry and for the society. Majority of truck owners are in the MSME sector. Besides, there are several tourist and tax operators who run diesel vehicles for their livelihood. They too fall under micro and small enterprises.
Meanwhile truck manufacturers have indicated that the ban leading to replacement of 10 year old commercial benefit vehicles would benefit them and help them tide over poor sales in recent years due to slowing economy. If the ban order is implemented, at least 40 per cent of the commercial vehicles plying in the National Capital will have to be replaced.
FICCI noted that worldwide mandatory ban on the vehicles are not very common, effective and popular programs. There is a need to address the issue in a holistic manner to have any significant impact on reducing pollution levels, emphasized FICCI.
FICCI has been advocating for the vehicle replacement policy with fiscal incentives especially for the diesel trucks that are the greater source of pollution, as claimed by the study done by IIT Kanpur.
More commonly, vehicle replacement programs are voluntary and supported by some form of policy incentives. These are usually fiscal incentives, such as direct subsidies or fees to eliminate or discourage the use of older vehicles.
They may also include other incentive policies such as restrictions on when and where high-emitting vehicles may operate. The effective use of non-fiscal policy incentives to complement subsides or other fiscal incentives are one of the important best practices adopted by countries. FICCI has submitted a detailed note on possible options of vehicle replacement policy in India to the Government.
Source : FICCI
Image Courtesy : WIRED
