Ban on large diesel vehicles a transient phase: Jaitley

PTI

Finance minister Arun Jaitley, who is in Japan, has played down the ban on new large diesel vehicles in Delhi, saying it is a “transient” phase and India is a market large enough not to adversely affect auto companies.

Jaitley, who arrived in Tokyo on Sunday for a six-day tour to woo investors, is to meet Suzuki Motor chairman Osamu Suzuki on Tuesday.

In Delhi, the heavy industries ministry on Monday requested the national green tribunal not to extend the diesel vehicle ban to other cities, news agency ANI reported. Reports said the country’s only green court was looking at broadening the bar to 11 more cities, worrying auto makers.

A week ago, the NGT ordered light and heavy diesel vehicles older than 10 years off the road in six Kerala cities, including the state capital Thiruvananthapuram and tourist town of Kochi. The Kerala high court has put the ban on hold for two months.

“I think the Indian auto sector is extremely comfortably placed. This is all transient phase which happens and I don’t think that with the kind of large market that Suzuki has, it is in any way likely to be adversely affected,” Jaitley said.

The minister was asked about his meeting with Suzuki amid policy uncertainly after the Supreme Court banned diesel vehicles in the national capital region of Delhi, which is battling air pollution.

The ban on sale of large diesel cars and sport utility vehicles with engines of two litres or more was first imposed in December. It has led to some automakers reworking their plans and introducing models with petrol options or smaller diesel engines.

Maruti Suzuki India chairman C Bhargava had in April termed the ban as “totally arbitrary”. Earlier this month, the world’s largest automaker Toyota said the restrictions would be the “worst advertisement of India”.