InvestorQ : How do you see the feasibility of the new green vehicle policy from 01 April?
shrinidhi Rajan made post

How do you see the feasibility of the new green vehicle policy from 01 April?

1 year ago

There are some practical concerns if you look at the number of vehicles that would fall under the watch category. Remember that India plans to shift into the new green tax regime from April 2021. However, what could be really intimidating is that there are a total of 4 crore vehicles that are more than 15 years old and still plying on roads. There is more to come. Out of these, nearly 2 crore vehicles are more than 20 years old.

If you look at state-wise break-up of these aging vehicles, then Karnataka tops this list with 70 lakh vehicles that are over 15 years old and out of that 35 lakhs are more than 20 years old. Uttar Pradesh occupies the second spot with 56.54 lakh vehicles while Delhi occupies the third place with 49.93 lakh old vehicles. The problem is a lot less intimidating in states like Maharashtra and Gujarat, which are supposed to have a large number of vehicles.

Ministry of Road Transport has digitised the data of such vehicles across most parts of India. However, that digitization has not been possible for many states so the effort may be spasmodic at best to begin with. The government plans impose a green tax on old vehicles to protect the environment and curb pollution. However, considering the numbers it could be a really Herculean task in front of the government as it tries to give a boost to auto sector.