NGT order banning diesel vehicle registration a ‘harsh step’: Pawan Goenka

The order of the National Green Tribunal banning registration of diesel vehicles in Delhi is a ‘harsh step’ and will not address issue of air quality, says Pawan Goenka, Executive Director, Mahindra & Mahindra.

The ban was one of the provisions in NGT’s order made on Friday while hearing a case relating to air quality in the Delhi National Capital Territory. It said diesel-powered passenger vehicles should not be registered in the city till the next hearing. The case is scheduled to be heard in January 2016.

The order impacts the largest market for automobiles, including diesel vehicles, in the country. Delhi accounts for nearly 7 per cent of the 30 lakh passenger vehicles sold in the country annually. M&M is among the leading manufacturers of diesel powered passenger vehicles.

Reacting to the order, Goenka told media persons over teleconference, the automobile industry which was not part of the case being heard by the NGT had been caught by surprise. This is ‘one more uncertainty’ that will impact investor decisions in the long term, he felt.

Questionable decision “When a product meets all the laws of the land, how can it be banned overnight?” he asked.

The automobile industry has consistently worked towards bringing down emissions but “all the hard work to make vehicles cleaner have been thrown out of the window,” he said. Singling out diesel fuel alone is not a solution to problems of air quality. The answer is in tightening emission norms on which the industry is cooperating, he feels.

With the introduction of BS IV standards, vehicular emission of particulate matter is down 82 per cent compared with 15 years ago and emission of nitrous gases is down 51 per cent. With the migration to BS V standards particulate emission will drop further by 80 per cent and nitrous gases another 36 per cent.

Nor are emissions only about particulate matter. Diesel engines are 20 per cent lower in carbon emissions as compared with other fuels, he said.

Consultation needed “It is amazing that diesel vehicles are being blamed.” A proper consultation is needed on these issues, Goenka said.

The NGT’s order has hit the industry hard as it raises questions over what happens with the stocks available with the automobile dealers and buyers who are awaiting registrations of new vehicles.