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5,000 jobs affected by ban on diesel vehicles in Delhi-NCR

Ban has resulted in production loss of about 11,000 units, says SIAM

Policy Pulse
Publish Date: May 15 2016 12:57PM | Updated Date: May 15 2016 1:01PM

5,000 jobs affected by ban on diesel vehicles in Delhi-NCR

 The Supreme Court imposed ban on diesel cars and SUVs of engine capacity 2,000 cc and above in Delhi-NCR has affected nearly  5,000 jobs in the automobile sector, as per industry body SIAM.

 
It also said that ban, which is in effect since December 16, has resulted in production loss of about 11,000 units.
 
" Production loss due to the ban of these vehicles in NCR from December 16, 2015 to April 30, 2016 has resulted in 11,000 vehicles, which translates to impact on approximately 5,000 jobs in the industry," Society of Indian Automobile Manufacturers (SIAM) said in a written submission to the Supreme Court.
 
It further said that if extended across the country, ban would lead to a loss of production of one lakh vehicles over the same period and would have affected  47,000 jobs.
 
Pointing out that no dealer is financially strong of indefinitely holding such large stocks of 2,000 cc and above diesel passenger vehicles and SUVs, the body said: "The banned stocks had to be transferred to non-NCR dealers for disposal."
 
Opposing tax of environmental compensation charge (ECC) on diesel vehicles, it said that decision could result in permanent job loss of many industry employees and the problem will become multiple if such measure gets extended to other parts of the country beyond NCR.
 
As there are so many PILs filed for banning of four-wheeler diesel passenger vehicle and registrations are pending in high courts, Siam expressed concern that a repetition of apex court ban to across the country could "result in a huge, prejudicial adverse impact on manufacturing and direct and indirect employment on a pan India basis".