Ban on diesel vehicle not going to achieve desired objective of reducing pollution: SIAM

Citing a study conducted by IIT Kanpur, the Society of Indian Automobile Manufacturers (SIAM) has  stated that the Supreme Court ban in the NCR on cars with diesel engines of 2000 cc and above will not result in the desired objective of reducing pollution. IIT Kanpur recently conducted a study which indicates that all types of passenger cars as a whole contribute to only 2% of the PM 2.5 pollution load in NCT. Out of this 2%, all diesel cars are estimated to contribute only 1.5% of the PM 2.5 pollution load. Further BS-IV diesel cars contribute only 0.5 % of PM 2.5 emissions.

SIAM noted that all diesel cars being manufactured today are compliant to the current emission norms set by Government of India, compliant vehicles can never be considered as “polluting”, and the “polluter pays” principle cannot be applied, unless there is a violation of the notified emission norms. The automotive industry has made significant investments in diesel technology which are in accordance with the  investment policies of  the Government. As such, putting any restrictions or bans on a legally compliant industry tantamount to an infringement of the fundamental right to do business in the country.

According to SIAM, ban on diesel vehicle is not going to achieve the desired objective of reducing pollution, but will vilify diesel technology which has gone through a major transformation over the last 15 years and today is highly clean, as well as energy efficient. A ban on BS IV diesel cars legally encourages old and highly polluting vehicles not meeting the current emission norms, to continue plying on the road, while not allowing new vehicles compliant with current emission norms to be used. This is contra to the objective of the ban. It also gives an impression that there is no stability or predictability in the policy regime which will deeply dent the country’s global image as an investment destination and the ‘Make in India’ priority. Many auto MNCs have already taken a decision to freeze further investments in India until complete clarity is achieved on key policy issues which can have a bearing on their business prospects in India.

The auto industry with a total size of approximately Rs. 600,000 crores contribute almost half of the Manufacturing GDP of the country and employs more than 31 million persons direct and indirect. According to Government’s Automotive Mission Plan (AMP), the auto industry has the potential to employ a further 65 million persons in the next 10 years. The task before Government now is to arrive at a unified stand on major policy issues like the diesel case and clarify the policy to the Courts, as well as globally.

Source: SIAM