Voluntary Modernisation Scheme: Engine Replacement Instead of Vehicle Ban Needed

voluntary modernisation scheme proposed by government has replacing incompliant vehicles but some transporters want engines to be replaced

NGT Ban Stays On Diesel Vehicles

There’s been a whole new propaganda brewing as the transporters are pushing for a new scheme instead of abandoning the vehicles altogether that do not come under the Delhi-NCR diesel car restriction. The newly aroused proposal questions in banning the vehicles and asks the government authoritative bodies: why the engines cannot be replaced and limit the resource damage to the owners?

It was in contrary to the initially suggestions by the Road Transport Ministry under the modernisation scheme for the vehicles bought before March 31, 2005. The government should be considering introducing more cleaner fuels such as bio-diesel and encourage automobile manufacturers to go with emission controlling approaches by providing excise duty allowances according to the President of All India Motor Transport Congress.

BusinessLine also reported that the people with industry knowledge predicted a disoriented impact as the unorganised transporters do not change their fleet operations as much as the well-settled movers. The latter would continuously opt for different vehicles but the unorganised players wouldn’t do such revisions due to financial hurdles. The other suggestion is to have an end of the life vehicle scheme that will give a clear vision to the current owners.

The modernisation scheme facilitates three tasks for vehicles dated back prior to March 31, 2005. They are as follows: seeking scrap recycling value, car makers providing special incentives for older vehicle exchange and issuing 50 per cent excise duty for vehicles purchased under that scheme. As India doesn’t have a defined vehicle scrapping policy, the orderly fashion in which the OEMs (Original Equipment Manufacturers) would decide on the schemes is still left uncertain.

A strictly framed law for end of life vehicle policy is also needed while the Road Transport and Highways Ministry is hearing all the pros and cons on the operation of heavy duty and public transport fleet coming under the voluntary vehicle modernisation scheme. Replacement of 2.8 crore older vehicles, crude oil import conservation of Rs. 7,000 crore and generation of Rs. 11,500 crore in vehicle scrapping in the next five years are the expected outcome the government has been hoping to achieve.

Follow us on Facebook, Twitter & on Youtube

SOURCEBusinessLine