| Monday, February 13, 2017
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| Curbing pollution via ban on old vehicles: Rewards will work if stick works |
| Correspondent
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| The government seems to have taken carrot-and-stick approach to curbing pollution through bans on old vehicles. While, in December 2015, it had announced that all commercial vehicles older than 15 years will be banned, on Thursday, the Committee of Secretaries gave in-principle approval to a policy to scrap older vehicles. According to The Economic Times, under the proposed policy, commercial vehicles older than 15 years would be eligible for incentives if replaced by new ones. So, the government would cut the road tax and excise duty by half, provide fair value of scrap and ensure a discount from automobile manufacturers, cutting the cost by 15% for anybody voluntarily scrapping their old medium and heavy commercial wheelers.
An AT Kearney study, instituted by the ministry of road transport and highways, shows that MHCVs account for 2.5% of the total fleet, but contribute over 60% of the air pollution. Moreover, of these, 11.2 lakh MHCVs are more than 15 years old and contribute to 34% of the pollution. While the government policy would target these to bring in a new, more efficient fleet, it would be better served to follow this with a stricter action plan, one that ensures that these vehicles go off the road. Moreover, now that the government has banned vehicles older than 15 years, it would be much more feasible to incentivise those with CVs more than 12 years old, instead of those that are running these vehicles even after government banned them last year. The rewards would only work if the stick works.
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| SOURCE
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http://www.financialexpress.com/opinion/curbing-pollution-via-ban-on-old-vehicles-rewards-will-work-if-stick-works/548416/ |
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