India's robust automobile industry has been dealt a first-rate body blow after the Supreme Court in its verdict these days imposed a ban on sale of all of the Bharat Stage three or BS-III compliant automobiles starting 1 April. The apex court said that health of citizens is extra vital than the commercial hobbies of vehicle producers.
The cutting-edge unsold stock of BS-III vehicles stands at Rs 12,000 crore, The Economic Times report says.
According to Siam data, the united states of America has a complete stock of eight.2 lakh motors which can be BS-III compliant. Among the car categories, India has 96,000 BS-III industrial automobiles, 6 lakh two-wheelers and 40,000 3-wheelers, which may be impacted by the SC verdict.
Reuters
However, India's automobile bigwigs had a combined reaction on the Supreme Court order.
"We are shocked with the aid of the judgement. The judgement will come as a massive surprise to the industry," said Vikram Kirloskar, Vice Chairman of Toyota Kirloskar Motor, to CNBC-TV18.
Supporting the SC order, Rajiv Bajaj, Managing Director of Bajaj Auto informed CNBC-TV18, "We are thrilled with the aid of the SC order on BS-III car ban. We will be 0 BS-111 stock by using 1 April in three wheelers. This is the sign that matters are changing."
Siam president Vinod Dasar said it will look ahead to an explanation on order on registration/sale publish 1 April.
The Environment Pollution Control Authority (EPCA), which had sought ban on registration of such automobiles after 1 April, said that the car firms were having the latest era for a long time and that they need to have scaled down the manufacturing of BS-III vehicles
The car firms had informed the Supreme Court the day past that it become now not viable for them to transform the present inventory of BS-III compliant and 4-wheelers to Bharat Stage-IV emission norms.
Solicitor General Ranjit Kumar, appearing for the Centre, had told the court docket that gas for BS-IV car is "an awful lot cleaner" and the oil refineries had spent around Rs 30,000 crore when you consider that 2010 to provide it.
He had stated that a BS-III automobile can run on BS-IV gasoline and it isn't always that BS-III automobiles will become redundant because those will run on BS-IV gasoline.
The apex court had earlier asked the auto companies now not to frustrate the Centre's initiative to check increasing ranges of pollution by using promoting BS-III motors which can be being held in stock.
It had indicated that it'll both ban registration of such automobiles or impose fees to catch up on the fitness risks created with the aid of pollutants.
It had stated that three options were to be had earlier than it.
These were either to ban registration of BS-III automobiles or permit their registration but ban plying of such motors in important cities or ask the agencies to pay expenses for creating health hazards and reimburse the Centre which spent massive money in upgrading the fuel trendy.
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