A vehicle replacement policy should be introduced by the Government immediately to put an end to the uncertainty surrounding the industry, Ficci said on Friday.
Earlier this week, the Supreme Court banned registration of diesel-run SUVs and cars having engines beyond 2000 cc in Delhi and NCR from March 1, next year. The National Green Tribunal (NGT) also recently directed that diesel-run vehicles will not be registered in Delhi with immediate effect and asked the central and state government departments not to purchase diesel vehicles.
The industry chamber called for “taking balanced and holistic measures based on authentic studies so that the interest of every stakeholder is given due weightage”. “Ficci emphasises the need for immediate introduction of vehicle replacement policy to end the uncertainty surrounding the industry and for the society”, it said.
“There is a need to address the issue in a holistic manner to have any significant impact on reducing pollution levels,” the chamber said. It also advocated for fiscal incentives especially for the diesel trucks that are the greater source of pollution, as claimed by a study conducted by IIT Kanpur.
Vehicle replacement programmes 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 subsidies or other fiscal incentives are one of the best practices adopted by some countries, said Ficci.