Ban on diesel cars hurting investment in auto industry: Minister

The directives of Supreme Court and National Green Tribunal (NGT) to ban diesel cars of 2000 CC and above are having adverse effect on investment in the automotive industry, according to the Ministry of Heavy Industries and Public Enterprises.

“Decisions on new investments in the entire automotive sector across the country have certainly stopped for the last six months as it seems auto industry is skeptical on the sustenance of the existing policies of the government in light of the recent direction by honourable courts and tribunals,” said Babul Supriyo, Minister of State of Heavy Industries and Public Enterprises, in a written reply in the Rajya Sabha yesterday.

In December last year, Supreme Court of India had directed an interim ban on sale of new diesel cars of 2000 cc and above in the National Capital Region (NCR). The Department of Heavy Industry has submitted an affidavit to SC with request to modify the order, dated December 16, 2015, imposing ban on sale & registration of new diesel vehicles of engine capacity more than 2000 cc. The Department is of the opinion that BS IV emission norms is the most stringent emission norms in country and to ban a category of vehicle which is meeting the stringent emission regulations and all other laws and regulations of the country, is unjustified. 

A circuit bench of Southern Bench of Green Tribunal had already banned sale of new 2000 cc and above diesel cars in Kerala in May 2016. However, a stay on the same was granted by the Kerala High Court. The matter is again to be heard in Kerala by the NGT Circuit Bench.