The Supreme Court on Tuesday upheld a temporary ban on the sale of large diesel cars in New Delhi to combat toxic smog in the Capital, but postponed hearing an industry appeal on an environmental tax that carmakers say will hit investment.
Delhi’s block on new diesel cars has unsettled the auto industry, its salesmen and investors, who warn the ban and uncertainty surrounding it could derail a tentative recovery in auto sales.
Green groups want to extend the ban to smaller diesel cars and other smog-choked cities.
The presiding Supreme Court judge said on Tuesday that the court was considering expanding the ban to diesel cars with engine capacity of less than 2,000 cc — currently not covered — but would first seek industry input on the matter.
The Supreme Court had also been expected to rule on Tuesday on a separate green tax on all diesel cars in the city, but has yet to announce its decision on that levy.
The decision on the tax, critical for automakers such as Mahindra & Mahindra, Tata Motors and Toyota Motor Corp that have invested heavily in making cars for diesel-loving consumers, may now be heard next week.
Delhi is one of the world’s most polluted cities, with residents often struggling to breathe in air quality that is worse than in China’s capital Beijing.
Automakers say they want a comprehensive plan — rather than court-led initiatives — to determine the regulatory structure.
More entry points closed
In another directive to clean up the polluted air in the Capital, the Supreme Court has specified four more entry points through which no heavy commercial vehicle, unless bound for Delhi, will be allowed entry.
“We are not concerned with any other aspect. We are only concerned with the environment,” the Bench said, ordering: “We direct that no heavy commercial vehicles, except those which are bound for Delhi, shall be allowed to enter through entry points at National Highway 2, 10, 58 and State Highway 57.”
The fresh prohibition will restrict heavy traffic inflow in Delhi from Faridabad, Palwal, Ghaziabad and Baghpat.
The court, on December 16, had restricted the entry of commercial vehicles into Delhi from NH-8, which connects Jaipur to Delhi, and NH-1 that connects Punjab, Haryana and other northern States to Delhi via Kundli border.
The Bench directed the Centre, Delhi, Uttar Pradesh, Haryana, National Highways Authority of India and MCD to implement its directions and ensure that no inconvenience is caused to the public. It also sought a report in three weeks.