The Ministry of Road Transport & Highways (MoRTH) is claimed to be working on a voluntary vehicle fleet modernisation policy.

Story by:

Bhushan Mhapralkar

Recent incidences attracting the ire of the judiciary in view of the rising pollution levels in some Indian cities seems to have set the ball rolling in many directions. Even as the Indian auto industry races to meet the Bharat Stage VI emission deadline for 2020 instead of the earlier (2023) deadline set by the Indian Government, much work it is claimed, is underway on many other fronts. One of these is the formulation and induction of a voluntary vehicle modernisation policy. Applicable to almost all the vehicles in India, the vehicle modernisation policy – also referred to as ‘cash for clunkers’, may offer excise duty benefits to buyers who surrender their old vehicles and replace them with new, less emitting ones. Nitin Gadkari, the roads and highways minister, is known to have said that the new policy (cash for clunkers) is aimed at encouraging people to discard their old vehicles and purchase new ones, which would also benefit the government in the form of tax revenue. He is also known to have mentioned that the road infrastructure is not able to match the growth of vehicles in the country, and discarding old vehicles will help de-congest the roads. Like family planning, vehicle planning is important, and needs to be put into action, he is also known to have expressed.

Pollution

With industry leaders questioning the emphasis on imposing restriction on vehicles under the guise of vehicular pollution in places like Delhi where the need may be to look at pollution caused by other sources including dust and industries, questions about the aim of the ‘cash for clunker’ policy are also being raised by a few industry elements. Especially when the scheme brings under its ambit commercial vehicles, which are spread all over – in cities as well as on the highways, doing a short haul and a long haul. Claim industry sources that the MoRTH has mandated Gurgaon-based subsidiary of A.T. Kearney Limited, UK, with the task of drafting a voluntary vehicle fleet modernisation program (V-VMP). Looked upon as the one that will drive reduction in vehicular pollution in the country, views on V-VMP are being invited by the company from industry bodies, transporters and fleet operator bodies. One such body, Delhi-based Indian Foundation of Transport Research and Training (IFTRT), was also consulted. Expressed S.P. Singh, Senior Fellow, IFTRT, that there is a need to have a wider discussion on this subject. “A lot of incongruous points are emerging in the government’s hurry to host such a policy, which essentially was the domain of CV makers and truck and bus owners,” he added.

Environment and safety

Environment and safety are the two issues whose solution may lie in the vehicle modernisation policy. The claimed that the government is hurrying into a policy decision that would essentially be the domain of CV makers and truck owners adds a different dimension.

Expressed Ravi Pisharody, Executive Director – Commercial Vehicles, Tata Motors, that they share the concern for safety on the road and the environment, and believe that it is critical to understand the issue with a holistic approach, with the right environment-friendly initiatives undertaken at all levels. “The need for replacement of older vehicles or modernise a commercial vehicle fleet could facilitate increased market acceptance of efficient and greener vehicles with better technology,” he added. Terming the proposed regulation as beneficial for the entire ecosystem – the environment, society, the consumer and the industry, Pisharody averred, “Given the expanse of the Indian geography and its population base, any regulation is more likely to be implemented in phases, hence the sales of both passenger and commercial vehicles will be impacted accordingly.” At this juncture it may be worth mentioning that Erich Nesselhauf, Managing Director & CEO, Daimler India Commercial Vehicles, on the sidelines of the launch of the Daimler bus operations in India, expressed that the best solution to curb pollution is to replace older polluting commercial vehicles with newer, cleaner burning ones. For reasons pertaining to the amount of investment involved, and also from the lack of information about how the proposed regulation will impact them, fleet operators seem to be wary.

Phased implementation and fuel quality

Industry experts CV spoke to, expressed that it would help to implement a ‘cash for clunkers’ sche