Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.

There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Wednesday, 29 March 2017

Best out of a Bad Bargain ?



Yesterday Supreme Court decided that vehicles conforming to BS 3 emission standards , cannot be sold / registered , starting 01 April 2017


Vehicle manufacturers are stuck with an inventory of some 8 lakh BS 3 vehicles , valued at Rs 14,000 crore



Manufacturers are left with the following 3 options :


·         Scrap the BS 3 vehicles ( after salvaging whatever parts they can )


·         Upgrade the vehicles to meet BS 4 standard (  technically doubtful  )


·         Export vehicles to countries where these are still acceptable ( very doubtful  )



Allow me to offer a 4th option , for serious consideration by :


·         Vehicle Manufacturers / their Associations / Car Dealers


·         Central / State Governments


·         The Supreme Court



My following suggestion is based on these  assumptions :

·         BS 3 vehicles are less polluting than BS1 / BS 2 , vehicles

·         Out of our current vehicle population of some 200 million vehicles , at least 10 million vehicles still polluting our climate, are only BS1 / BS 2 compliant



Out of these , Shri Nitin Gadkariji wants to replace 6 million ( of course, with BS 4 / BS 6 vehicles ) , by 2020 , under a “ Old Vehicle Replacement Scheme “ , which offers,


     #  heavy discount ( in purchase price ) to the buyer ( who surrenders his OLD /    POLLUTING vehicle to a government approved / authorised scrap dealer )

     #  heavy subsidy to the Vehicle Manufacturers for replacing those old vehicles



I suggest that :


·         Vehicle Manufacturers Association file a REVIEW PETITION in the Supreme Court


·         Review Petition would request Supreme Court to modify its order as follows :



      #  Inventory of 8 lakh BS 3 vehicles can be sold at a  discount to buyers who come forward to get their old BS 1 / BS 2 vehicles replaced with this inventory

        
      #  Discounts ( over current sale price ) will be :


·         25 % for vehicles which are 5 years old


·         50 % for vehicles which are 10 years old


·         75 % for vehicles which are 15 years old


      #  These 8 lakh BS 3 vehicles can only be sold to the current owners of old BS 1 / BS 2 vehicles , which are still plying on our roads


      #   These can be sold only when the buyer hands over ( a kind of “ Exchange Scheme “ ) , his old vehicle , along with the Registration Book , to the Dealer


     #    Buyers will also sign an undertaking that he shall not RE-SELL such a replaced BS 3 vehicle for 5 years to anyone else


·         Considering that lesser the number of “ Privately Owned Cars “ and more the number of “ Public Cars / Buses “ as taxies  on the roads , means lesser the pollution , Supreme Court should also allow sale of these 8 lakh BS 3 vehicles to Taxi operators / Fleet operators / Car Transport Service Aggregators etc , at a flat 25 % discount ( without exchange ) .



I estimate that this relaxation would remove from our roads , some 20 lakhPrivately Owned Cars “ , whose utilization is hardly 5 % of the time !



·         Apart from this , Supreme Court may direct that the Central government and the State governments , replace all of their own old BS1 / BS 2 , with the inventory of BS 3 vehicles lying with the manufacturers


For such replacement , manufacturers to give 50 % discount to the governments


Whereas , Shri Gadkariji’s OLD VEHICLE REPLACEMENT SCHEME , has met with a lot of opposition from both , the vehicle manufacturers as well as the old car owners , I believe my proposal would be welcomed by all concerned ( for the obvious benefit that each party stands to reap ! )



Dear Shri Gadkariji :


A phone call from you to SIAM Secretary , telling him of your willingness to make NDA government a party to the REVIEW PETITION , would provide a great relief !




30  March  2017




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