Over Regulation in the Indian Economy
Case study of Life of Vehicles
Request to Secretary Environment, NCT Delhi Government
to withdraw order dated January 20, 2021
Rohit Kumar Parmar Free lance[1]
IES (Retd)
Former Senior Economic Adviser
Ministry of Consumer Affairs, Food and Public Distribution
Government of NCT of Delhi, Department of Environment has issued an order dated January 20, 2021 citing NGTs directions in OA 21/2014 on plying of 10 & 15 year vehicles, with instructions that the vehicles be seized. A snapshot of the same is at Annex A.
This action is another example of the cliché `left hand does not know what the right hand is doing.’ It is also an example of a lower organization acting without/ beyond authority. The order needs to be withdrawn without delay for the following reasons.
1. Central government has been extending the life of vehicles in view of the Covid crisis. The first order on this issued on March 31, 2020 extended the life of vehicles which would have expired with effect from February 1, 2020, and the latest extension issued on December 27, 2020 extended the life till March 31, 2021.
The respective web links are
These orders have been issued citing the Ministry of Home Affairs guidelines no 40-3/2020-DM-I(A) dated March 24, 2020 under the Disaster Management Act, 2005 and so have overriding authority. The link to the order follows.
The order dated January 20, 2021 prima facie violates the above order/s in respect of vehicles whose life would have ended wef February 1, 2020. However, there is no clarification to this effect to the enforcement agencies. This would avoidably subject public/ commuters to harassment and corruption.
2. Further, the order cites the Commission on Air Quality, minutes of whose in public domain are silent on measures/aspects the order covers. There are 10 measures cited which do not include the action suggested in the order. The minutes are available at the following link and the same are Annex B.
The order would unnecessarily trouble the public/ commuters and subject them to harassment and corruption.
3. Enforcement for 40 lakhs vehicles (estimate reported in newspapers) will have weak implementation and only facilitate collection of rent by the enforcing agency, which the patently illegal order would facilitate.
4. The illegal order will deprive population whose economic activity depends on this - 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 speed up closure of repair workshops, where lot of capital is at stake.
5. Budget 2021-22 has announced a vehicle scrapping policy, an extract of para 36 of the Budget Speech 2021-22.
Scrapping Policy
36. We are separately announcing a voluntary vehicle scrapping policy, to phase out old and unfit vehicles. This will help in encouraging fuel efficient, environment friendly vehicles, thereby reducing vehicular pollution and oil import bill. Vehicles would undergo fitness tests in automated fitness centres after 20 years in case of personal vehicles, and after 15 years in case of commercial vehicles. Details of the scheme will be separately shared by the Ministry.
As per this policy, vehicles of 20 years in case of personal vehicles and 15 years in case of commercial vehicles only will require fitness tests. The remaining vehicles can ply sans fitness tests.
In view of the above, please cancel the order.
Annex B
The members of Commission for Air Quality Management(CAQM)in National Capital Region and adjoining Areas met and reviewed the air quality scenario in the region, actions taken by various agencies so far and further steps to be taken for improving the air quality.
The Commission noted that future action will necessitate consultation with various stakeholders. However, at this stage the Commission stressed the need to strictly enforce existing laws, rules, guidelines, directions and standard operating procedures to minimize air pollution on an emergency basis.
The Commission also felt that active public involvement is critical in the abatement of air pollution and identified the following major immediate measures:
1. Minimize use of personalized transport to the extent possible
2. Restrict travel unless absolutely essential
3. Encourage work from home
4. Strict enforcement of laws and rules regarding dust control measures including at construction sites
5. Strict enforcement to prevent burning of municipal solid waste and biomass
6. Intensify water sprinkling particularly in dust prone areas
7. Use of anti-smog guns at pollution hotspots specially at construction sites
8. Strict implementation of extant rules, Courts and Tribunal orders regarding stubble burning and use of fire crackers
9. Seek co-operation from civil society and public spirited citizens to report air pollution incidents on the Sameer App
10. Encourage coal using industries in NCR to minimize the use of coal in the coming months.
[1] Author has in posts on his website (https://rohitkparmar.wixsite.com/site), twitter (https://twitter.com/rohitkparmar?s=09), facebook (https://www.facebook.com/me/), linkedin (https://www.linkedin.com/in/rohit-kumar-parmar-841b4724) been writing on impact of Covid and can be reached at rohitkparmar@yahoo.com.
Starting 1992, the author has been writing on Direct Tax Reforms in `The Economic Times’. Some of these are available on his website.
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