The Society of Indian Automobile Manufacturers [SIAM] has raised a hue and cry over a staggering 880,000 Bharat Stage [BS] III vehicles [including four wheeler and two wheeler] with automobile dealers facing the prospect of being scrapped as BS IV fuel norms take effect from April 1, 2017 all over the country.
The cacophony of all powerful SIAM – an association of vehicle and engine manufacturers – seems to be working as a 2-judges bench of the Supreme Court [SC] which heard a plea of a clutch of automobile manufacturers on March 25, 2017 directed the Centre to come with options to mitigate the crisis.
The apex court even discussed various options taking on board the possibility of allowing registration of commercial vehicles with engines conforming to BS III to operate ‘locally’ but without giving them national or State permit. Without doubt, the highest court is showing laxity in enforcement of new norms.
For decades, industries and businesses have been used to managing the executive, legislature and judiciary to pursue their agenda. They have leveraged parliamentarians across the political spectrum to get favorable laws enacted. They have prevailed upon bureaucrats use their discretionary powers to their advantage. And, they have resorted to a host of tactics to get courts pronounce helpful verdicts. The trend continues as amply demonstrated by the instant case. First, a few words on the background are in order.
The Environment Protection Control Authority [EPCA] appointed by none other than the SC to assist it in implementing environment-friendly measures had made it abundantly clear as far back as February 2016 that they have to gradually shut production of BS-III vehicles before the close of the deadline on March 31, 2017. The 14 month period was sufficient to enable manufacturers liquidate existing stock of BS-III vehicles and fill the supply line with BS-IV stuff.
Yet, if they have a huge inventory of BS-III vehicles even as the D-day is less than a week away, it smacks of their malafide intent. This is clearly reflected in their actions. Thus, they have refused to accept the orders passed by EPCA from time to time asking them to cut down production. They have also mis-interpreted the order to mean that the cut-off date of April 1, 2017 is with reference to start of manufacturing BS IV vehicles.
Such an interpretation is not only illogical but also patently absurd. The switch to a new standard is always with reference to a product entering the market. In other words, as on this date, BS IV vehicles should be available for sale in dealer showrooms. The manufacturing operations should be dovetailed to ensure that it happens. When, those operations need to start is an internal management decision and has no relevance whatsoever to the date of compliance with the order.
When, these dodgy and diversionary tactics did not work and even as EPCA has been unrelenting in ensuring compliance as on April 1, 2017, the manufacturers are now presenting a fait accompli. They are harping on the unprecedented loss they will incur in the event of the entire stock of vehicles with BS III specifications getting scrapped.
The stock of vehicles with outdated norms is the inevitable outcome of their decision to consciously ignore the warning from the authorities and malafide intent to flout the norms. If, the inventory has to be scrapped and in the process, they suffer a loss, they should be made to pay for it. Having deep pockets, all these manufacturers can absorb the loss. So, it won’t be morally repugnant either.
The action of manufacturers is all the more reprehensible when seen in the backdrop of the swift action taken by other key stakeholder [albeit with regard to compliance with new standards] viz. refineries. The latter undertook necessary modifications at huge cost [roughly Rs 18,000 crore per refinery] and are now ready with supply of fuel to meet the BS IV norms. If, the refineries can do it [indeed, that required preparations over a much longer time frame], there is no reason why the manufacturers could not do their bit.
Now, to give manufacturers some leeway by letting registration of BS III vehicles happen will not only be unfair to the refineries but also lead to disastrous consequences for the environment. It should be clear in no uncertain terms that by allowing these vehicles to run, the court will be letting them pollute air for another 20 years.
Further, any attempt to compromise with BS-IV deadline will come in the way of introducing Euro-VI fuel by 2020. The significance of Euro-VI can be gauged from the fact that once this level is achieved, the impact of a highly polluting diesel fuel on the environment will be as good as that of petrol.
Being one of the crucial pillars of the constitution, the judiciary is duty bound to enforce the law of the land. This is all the more when it comes to protecting the environment and health of the citizens. By any stretch of imagination, courts cannot be seen to protect commercial interests of the vehicle and engine manufacturers.
Prime minister, Modi has offered a governance paradigm that is fundamentally different from the past; a paradigm that is entirely policy driven, transparent and free from discretion. This has brought about sea change in the functioning of bureaucracy and the parliament. But, this does not seem to be percolating to judiciary.
Supreme Court will do well to give right signal by stopping registration of all BS-III vehicles. It should not show even slightest accommodation say, by letting these run on payment of so called environment tax [an option mooted to give relief to auto czars].