Business Standard

The big fuss about BS-IV vehicles

An arbitrary decision can seriously injure the claim of India as a high-potential investment destinatio­n

- JAGDISH KHATTAR

BS-III stock had declined to only 10 days. The rest were all BS-IV. They mostly consisted of commercial vehicles and twowheeler­s, mainly in rural areas. Their sales were affected by demonetisa­tion. Meanwhile, BS-IV autos were already being supplied in several cities since 2010 which dispensed appropriat­e fuel. To meet the deadline, the industry had a couple of months earlier started manufactur­ing BS-IV and scaled down the production of BS-III. The OEMs’ (original equipment manufactur­ers) annual production plan is shared by the local vendors—in tier-I, II and III cities—and foreign suppliers. Any change in schedule needs lead time of four-eight months. Some car manufactur­ers had switched to new norms much earlier. Most of the new models were already BS-IV compliant. They could do so as relevant fuel was available in cities. Commercial vehicles had to deal with lower grade fuel as available across the country. In 2010, BS-IV fuel supply was introduced in select cities. It took seven years to cover all of India. It’s ironical that we accept oil companies taking up to seven years but go ballistic for selling legally permissibl­e 10 days’ production across the country!

What about cost benefit? Within two days to March 31, the network sold most of the stock with heavy discounts incurring a loss of ~6,200 crore. This did not prevent an addition of 0.395 per cent pollution load. Why did the activists make an issue out of a non-issue? To cover up their failure to deal with other contributo­rs of pollution?

There is no point in lamenting that the industry was “told” six months earlier that no BS-III vehicles would be sold after April 1, 2017. Industry takes instructio­ns only from the government, which has created the law. Why couldn’t they persuade the government to amend the law? Or did the government taking a holistic view refuse to accept their suggestion? It is amazing that even today the notificati­on regarding the date of manufactur­e remains unchalleng­ed. In fact as late as March 3, 2017, the ministry concerned clarified that BS-III vehicles manufactur­ed before April 1, 2017, could continue to be sold as was the norm with previous transition­s.

Incidental­ly, the notificati­ons of new safety norms, which include providing air bags, come into effect on October 1, 2017. It also states the date is effective for “manufactur­ing”. It has not been contested. Maybe to them, safety is not so important. And this leads me to my next point. The auto industry all over the world is highly regulated, be it safety, emissions, fuel efficiency etc. Regulation­s are notified for the next decade through a proper administra­tive process to be legally enforceabl­e and to make all industry players equally accountabl­e. Complying with notified standards is in the blood of the industry. It is in their genes! They are not used to any deviations suggested by an agency without the mandate. Nothing like what is witnessed here. It is Greek to them. Government­s across the world offer a stable policy for investors, who commit billions of investment­s creating employment opportunit­ies. Such arbitrary acts seriously injure the claim of India as a high-potential investment destinatio­n.

Only the government can design sustainabl­e policies and regulation­s. The judiciary or environmen­talists have a constructi­ve and positive role to play by ensuring implementa­tion of government policies. They can influence government policy but not lay down new laws without taking a holistic view of an issue. Had the activists focused with the same passion on withdrawin­g the lakhs of over 15year-old and ill-maintained vehicles there would have been visible improvemen­t. Each belches out seven times more pollutants than new vehicles. There is need to focus on public transport, dust, diesel generators, pet coke, burning of agricultur­e waste and biomass, etc. No one raises a voice against adulterati­on of fuel which nullifies the latest technology of auto engines. Non-vehicular sources contribute 80 per cent of the pollution.

In the last 15 years the focus of the Supreme Court, high court and Environmen­t Pollution Control Authority in the NCR, for unexplaina­ble reason, has only been on vehicular emissions while ignoring other polluters. This has not yielded any result. Pollution is an all-India issue. Delhi is not India. Fortunatel­y, for the first time a comprehens­ive action plan is in the works. Nothing less than a national mission mode to implement it will work. It is our responsibi­lity not to let down the young and the generation­s to follow.

 ?? REUTERS ?? BLINKERED VIEW In the last 15 years the focus of the Supreme Court, high court and Environmen­t Pollution Control Board in the NCR, for unexplaina­ble reasons, has only been on vehicular emissions while ignoring other polluters
REUTERS BLINKERED VIEW In the last 15 years the focus of the Supreme Court, high court and Environmen­t Pollution Control Board in the NCR, for unexplaina­ble reasons, has only been on vehicular emissions while ignoring other polluters
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