The Government of India is reportedly framing a policy to phase out older petrol and diesel vehicles. Earlier, the government was only targeting diesel vehicles as it has been observed that diesel is the most polluting fuel.
The Supreme Court of India yesterday lifted the ban on the registration of diesel vehicles with engine capacity of more than 2000 cc after the automobile companies agreed to pay an environment protection cess of 1 percent of ex-showroom price of each vehicle. Regarding the imposing of environment cess on cars smaller than 2000cc, the question is open to debate and consideration.
Attorney General of India Mukul Rohatgi told Bloomberg that the resumption of sales is a big positive, but an eventual phase-out of old petrol and diesel cars is being considered in a new policy. The Center will now decide whether to implement the environment charge or not.
The ban on diesel vehicles in Delhi-NCR came on the backdrop of rising air pollution, which is the prime reason behind the increasing number of breathing problem-related cases being reported in young and adult alike.
The court order had affected leading car brands such as Mercedes-Benz, Mahindra and Mahindra Ltd., Tata Motors and Toyota, who majorly rely on sales of their diesel variant cars. The prohibition had acted as a deterrent and dented the sentiments of the customers. Now that the ban has been lifted, the companies are breathing a sigh of relief.
While it is not yet clear whether the 1 percent surcharge will be absorbed by all the manufacturers or not, Toyota has said that it will look to pass on the cost burden to the customers.
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