Business Standard

<b>B V R Subbu:</b> Beyond the odd-even formula

The drive to clear Delhi roads of polluting cars should start by increasing the price paid by those who pollute

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B V R Subbu
The slew of measures announced by the Delhi government on December 5, in its bid to tackle air pollution, is well intentioned, if little else. However, only one - the odd-even plan - grabbed the attention of the public, and has become the centre of a frenzied media debate.

A recent study on the sources of pollution in Delhi does highlight the role of vehicular pollution, but there is little evidence of any considered attempt to rein in other sources of pollution. Since these would vary from area to area, a ranking of the most polluted areas in Delhi in descending order of pollution would also be required to provide holistic solutions to the problem.

There is broad agreement that vehicular pollution - although not the biggest contributor to Delhi's foul air - is a grave problem. So we ought to start by insisting on the principle of "polluter pays", even before we attempt to permanently eliminate the root cause of the pollution. The National Green Tribunal (NGT) asked trucks using Delhi as a "transit point" to pay Rs 1,400 for each entry, or put another way, an effective levy of Rs 300 per litre of engine capacity. By that logic, the Delhi government ought to charge Rs 9,000 a month or Rs 1.08 lakh per annum from all cars in Delhi with an engine of up to one litre capacity, and so on. Instead, the government charges a mere four per cent to 12.5 per cent of the sticker price as lifetime registration charge. (Incidentally, Mumbai charges between 13 per cent and 17.5 per cent and Bengaluru between 15 per cent and 20 per cent for the same.)

So the panacea for too many cars clogging the city's roads ought perhaps to start by increasing the price paid by those who pollute, and can afford to pay for their comfort or status of owning a car. As a first step, car registration rates should be raised with prospective effect to 25 per cent for cars running on petrol and 40 per cent for those running on diesel. Such an increase in registration charges will not significantly increase the monthly EMIs paid on car purchases even by budget-car buyers. The increase in registration collections could help provide adequate, safe, comfortable, cost- and time-efficient commuting alternatives to Delhi citizens, via more Metro coaches and CNG buses or subsidies for electric rickshaws.

After a couple of months when car sales in Delhi go into free fall, auto manufacturers would cut their profits and prices, as would the unconscionably lucrative banking and insurance sectors. Some sort of a lower-level general equilibrium would ultimately be attained. In the process, the Delhi government would have partially put the brakes on vehicular pollution growth and made the move financially sustainable by transferring surpluses from the private household and corporate sector to the local government sector. This, in turn, could be used for expanding public transport.

A "local congestion surcharge" for existing Delhi-registered cars and a higher "visitor congestion surcharge" applicable to cars coming in from Haryana, Uttar Pradesh and other states is the logical next step. The collection could be via colour-coded passive RFID (radio frequency identification) tags as daily, weekly and monthly "congestion surcharge passes" sold online and delivered through banks or post offices. Implementing this at Delhi's entry points is reasonably simple. In the city, it would have to be randomised, but with stringent penalties for non-compliance. Any car "tracked" without an appropriate pass should immediately have to pay a fine of a multiple of the surcharge and be impounded. Considering there are a number of people, who do not use their cars every day, they would simply opt to buy daily passes and soon come to terms with the additional item in their monthly budget.

The Delhi government could also ensure implementation of the "two parking places per tenement" rule while approving plans for residential buildings and simultaneously levy a "street parking surcharge" for all vehicles in the city, much higher than the present one-time lifetime charge of Rs 4,000, and then quadruple parking fees at all market locations.

As the next step, at least 75 per cent of the NGT surcharge, at present levied on trucks passing through Delhi, should be levied on trucks delivering in Delhi too. Then, after a three-month grace period, the entry of only CNG-powered trucks and buses should be permitted. Interstate buses of state transport undertakings and tourist buses could of course pay the NGT surcharge applicable to trucks. The fear that such a levy would increase retail prices is unfounded. A Rs 1,000 entry surcharge on a 10-tonne truckload works out to just 10 paise per kilogram of load.

There's still a lot more to be done on the vehicles' side. The inadequacy of the Arai (Automotive Research Association of India) test process for emission clearance of cars at the level of the manufacturers has been exposed. A random emission checks process using world-class "test tunnels" at the RTOs, where new cars picked at random from auto dealer stockyards and tested prior to registration, is an imperative. If even a single unit of a car model fails the test, registration of all cars of that model could be suspended for three months till the manufacturer confirms that all vehicles in its dealers' stockyards in Delhi conform to the emission norms claimed. The damning effect such a measure would have on a defaulting company's brand and the resale value of its products would ensure that there are no cheaters.

Going beyond vehicles, the government could also invite global bids for re-commissioning our defunct power plants, with appropriate pollution safeguards in place, along with penalties or bonuses for delayed or early completion, respectively. Then ban the sale of coal and firewood in Delhi and give resident welfare associations organic matter-composting facilities to stop the burning of leaves.

But how will the Delhi government stop the farmer in neighbouring states from burning harvest residue? Or stop atmospheric inversion?


The writer is founder of Beyond Visual Range, a consultancy firm
 

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First Published: Dec 17 2015 | 9:46 PM IST

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