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Blanket Extension Of One Year For Life Of Vehicles– Covid-19 Relief Measures

Updated: Aug 20, 2021

Introduction :

Ministry of Road Transport and Highways in the backdrop of the Covid 19 crisis extended the validity of documents like driving licenses, permits and registration that expired since February 2020, till June 30, 2020, i.e., for a period of five months. url

A decision now needs to be taken on the validity after July 1, 2020. Ideally, a further extension for at least five months shall ensure adequate time for renewal of validity of the documents. If the workload of the RTO is also taken into account, the period needs to double, to clear the backlog. This shall avoid crowding at the RTOs and also help in maintaining social distancing. It will also allow use of vehicles and permits for the period they were un-utilized or under utilized.

(Action 1 -MoRTH)

Background to the end of life of vehicles :

A related issue is the end of life of vehicles - 15 years for petrol vehicles, 10 years for diesel vehicles in Delhi/ NCR and 15 years in other cities/ locations. The gap in the life of diesel vehicles in Delhi/ NCR and other cities, allows individuals to sell/shift the diesel vehicles to non-Delhi/ NCR cities for use, which is in conformity of the judgment of the National Greeen Tribunal, (Harvinder Sekhon vs Union of India, in M.A. No. 567 of 2016 AND M.A. No. 1220 of 2016, in Original Application No. 21 of 2014, 95 OF 2015 AND 303 of 2015, September 14, 2017) also

upheld by the Supreme Court of India. The process of sale/ transfer which was suspended due to the lock down needs to be restarted and will require time, for which an extension of time is required.

Finalization of draft guidelines by Union Government :

The process to implement the order of the National Green Tribunal entails the formulation of certain rules/ guidelines, pending which action cannot be taken.

Draft guidelines on `setting up, authorization and operation of Authorized Vehicle Scrapping Facility (AVSF)‘ were issued only on October 14, 2019 to obtain comments till November 15, 2019 and have not been finalized. url

After finalization of the draft guidelines, time is required to implement the scrapping of at least 40 lakh vehicles. As per newspaper reports (November 5, 2019), only 3,196 or 0.079 per cent of the 40 lakhs banned old vehicles plying in Delhi were impounded. Scrapping 40 lakhs vehicles requires that additional time be given. url

Matter in Supreme Court :

An earlier newspaper report (August 30, 2019), states the matter is pending before the Supreme Court in an appeal of the government. url https://timesofindia.indiatimes.com/city/delhi/sc-admits-appeal-against-ban-on-old-diesel-vehicles/articleshow/70900794.cms

The report stated that the central government has pleaded that diesel fuelled defence vehicles, school buses, tractors and private vehicles should be exempted from the blanket ban, the reasons are

(i) this would cause hardship to the owners of the vehicles whose livelihood depends on these vehicles,

(ii) vehicle owners had paid advance road tax for 15 years while registering their vehicles,

(iii) the power to fix the age of vehicle lies with the central government and provision of cancellation of registration has been laid down in the Motor Vehicle Act,

Additional reason of environment for a review by Supreme Court :

There is a reduction in air pollution levels during and post lock-down, which even otherwise is much lower than when the judgment was passed by the NGT. url

The reasons of environment offered before the NGT were partial and only spoke of air pollution. In the manufacture of new/ replacement cars, the pollution impact of mining, manufacture of steel, etc. does not appear to have been factored in and needs to be done. This also needs to be brought to the notice of the Supreme Court.

Mobility argument :

There has been large scale disruption of transport services across all modes rail, road, air, metro, public and private, passenger and goods, which would take time to restore. Restoration of transport services is going to be gradual and with reduced occupancy and so lower overall availability. Withdrawing over 40 lakh vehicles in one stroke would further disrupt the transport services and economic activity and should be avoided. Continued availability of the 40 lakh vehicles shall also help to achieve the objective of social distancing. Allowing these vehicles shall possibly help to boost mobility for tourism and other purposes, contributing to economic activity. Every attempt should be made to allow the continuance of these vehicles.

Scope to convert these vehicles to hybrid/ battery driven/ other fuels should be explored since in addition to extending the life of the vehicle it shall create economic activity in the conversion exercise. Even though inefficient, government may consider a subsidy for the same.

The withdrawal of 40 lakhs vehicles even under the earlier high rate of economic growth could not have been replaced in one stroke. This would have led to weak implementation and collection of rent by the enforcing authorities. In the present Covid scenario there are significantly lower incomes to support purchase of new vehicles, either on down payment or EMIs. Infact there are little incomes to support a loan or an EMI. Even though the auto industry may hope that this will step up demand, it is unlikely to happen. Infact they should consider supporting the auto spare parts and auto service industry, which will otherwise close down if these 40 lakh vehicles are scrapped.

The scrapping will also not be efficiently implemented, will reduce availability of transport options and disrupt social and economic mobility and also economic activity.

A political decision as in the case of farm workers needs to be taken that shall displease the auto manufacturers lobby but is essential in the interest of continued social and economic activity and help the auto spares and auto service industry.

Commercial activity argument :

Continuation of 40 lakh vehicles will also create economic activity for the insurance industry, auto repair both part and services, demand for diesel and petrol, income to drivers and associated staff, toll revenue, which can all be quantified. This will also help prevent/ slow down closure of repair workshops, where lot of capital is at stake.

It is requested that MoRTH file an MA before the Supreme Court seeking an extension by one year from the date of the decision the implement the end of life of vehicle order of the NGT so that

i. Draft guidelines are finalized,

ii. Decision is taken on exempt categories - `diesel fuelled defence vehicles, school buses, tractors and private vehicles’ . This can be done by strict pollution checks to be monitored by the Pollution body.

iii. Option is given to vehicle owners to convert the vehicle into hybrid/ battery/ other fuel operated vehicles.

iv. Allow use of the vehicles and permits for the period that were un-utilized or under utilized

v. Exempt old BS IV vehicles from the scope of the judgment as was done for the registration of new BS IV vehicles.

MoRTH may also clearly undertand the implications of each of the points explained herein and bring them out before the Supreme Court

(Action- 2 MoRTH MA in Supreme Court)

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