FICCI view on ban on diesel vehicles in Delhi

While respecting the Hon’ble Supreme Court’s order on ban on diesel cars above 2000cc and diesel public taxis, FICCI feels that the lack of clarity in the policy and such stringent measures could result in uncertainty that would impact on the image of the country as a preferred investment destination besides impacting a large number of entrepreneurs who have entered the travel industry.

The ban on registration of new diesel-powered vehicles in New Delhi could prove detrimental to the auto industry, and may not result in any significant lower emission levels since the new diesel vehicles emit lower pollutants given they comply with the advance vehicle emission standards (Euro IV), whereas the older vehicles with old emission norms would continue to ply on the road. The proposed Automotive Mission Plan is a shared vision of Government and the industry for a coordinated and stable policy regime for the automotive sector noted FICCI.

According to this plan, the Indian automotive industry has the potential to be a top job creator – 65 million additional jobs! FICCI had earlier suggested various options with respect to the policy for replacing old vehicles in the country in order to reduce pollution levels. The experience worldwide is that the stand alone mandatory policies or vehicle replacement programs are not very common and without additional incentives (fiscal or otherwise), these measures may become unpopular. The need of the hour is Vehicle replacement programs supported by some form of policy incentives, FICCI noted.