In its current form, the entire vehicle scrapping policy is heavily loaded against the middle class.
Presumably, there may be a thought process that people in the country have unhindered access to money to buy or change cars every few years.
France has an optional vehicle scrapping policy.
You can scrap your vehicle (if you want) to get a hydrogen or electric car. The French Government will give discounts to individuals for the new purchase. It also offers incremental benefits to people who have lower income to enable the new vehicle purchase.
Our vehicle scrapping policy has all the elements of providing incentives for the new vehicle purchases on paper. The provisions of the draft make for a compelling read.
1. Scrap Value for the old vehicle given by the scrapping centre, approximately 4-6% of ex-showroom price of a new vehicle.
2. Registration fees to be waived off for purchase of new vehicle against the certificate of deposit - draft notification.
issued
3. Draft rules notified for state governments to offer concession on motor vehicle tax of
• Up to 25% for non-transport vehicles
• Up to 15% for transport vehicles
4. Auto OEMs have been advised to provide 5% discount on purchase of new vehicle against the certificate of deposit.
On paper, this looks lucrative. You can read the provisions in the
MORTH policy document on page 22.
However, in the actual situation:
1. No discount on ex-showroom is available by the manufacturer
2. No waiver of registration tax is being provided by the Delhi Government
3. After a nudge by Mr. Gadkari last week, car manufacturers in India started offering scrappage bonus. Only Maruti Suzuki (up to 30000 scrappage bonus) and Nissan (up to 75000 scrappage bonus) have stepped forward with their offers.
4. No options are available to convert diesel vehicles to cleaner fuels such as CNG or Electric. In Delhi, there is no available option to convert to CNG or Electric drive train.
So, the entire cost of scrapping an old vehicle and replacing it with a new vehicle has been passed to the car owner. There is zero-incentive being offered by the Governments and manufacturers on the ground.
I may be wrong with what I have stated today. As of today, this is the best update I have in terms of the current provisions of the Scrapping Policy for vehicles in Delhi NCR.
Pollution
The carbon emissions of diesel vehicles are higher than gasoline engines by 13 percent.
However, the diesel vehicles offer better mileage. For the same distance travelled, you will consume lesser diesel than petrol.
If the concern of pollution is around PM 2.5 particulate emissions, there can be ways to filter the PM 2.5 emissions from the cars. There are multiple technologies available to reduce PM 2.5 emissions of diesel vehicles.
This brings a couple of important issues: 1. The proposed Draft Legislation for vehicle scrapping by the Ministry of Road Transport. assures benefits to the vehicle owners for scrapping and buying a new vehicle. But, these benefits are not being received by the people on the ground. 2. The entire 'Pollution' angle is debatable. A new vehicle manufacturing process adds considerable carbon footprint to the environment. So, the decision to scrap vehicles does not seem to be based on pollution reduction.
And, modern technologies do allow people to reduce PM 2.5 emissions of the vehicle.
The Central Government needs to ensure that the proposed policy is implemented without hassles.
The Courts also need to ensure that the vehicle owners get their share of the proposed benefits.
My humble request to the Government would be to:
a) Tweak the policy to allow well-maintained vehicles to pass stringent automated pollution tests. In such tests, there must not be any scope of harakiri.
or
b) Ensure that the proposed benefits to the people are credited to them during new vehicle purchases.
As a middle class person, I have the following 5 reasons to be aggrieved:
1. My pristine condition diesel car with very low mileage has been rendered inoperable in Delhi.
2. For the new vehicle purchase, the stated benefits are not available.
3. There is no scientific basis to remove diesel vehicles of 10 years of age from the road based on pollution. The PARALI burning is a more significant and bigger polluter in Delhi.
4. Conversion of diesel vehicles to CNG or Electric drive trains is not available for the car owners in Delhi. The 'Switch Delhi' campaign website is a fine example of the gaps in this policy's implementation in Delhi.
5. I paid the Road Tax for 15 years. However, by reducing the life of the diesel vehicle from 15 years to 10 years, the additional tax element should have been refunded or adjusted in the new vehicle purchase.
All this makes me feel that I am a sacrificial lamb for the Government with no recourse left anywhere.
I can only hope that some policymakers get to read this and understand the actual predicament of private vehicle owners.