[Answered] A total ban on diesel vehicles can fasten the gradual process of moving towards cleaner fuels, however, it can cause serious disruptions in the Indian Economy. Discuss.

Introduction: Give the context of the committee and its proposals.

Body: What are the positives and negatives of the ban on diesel vehicles?

Conclusion: Way forward

Recently, a panel led by former petroleum secretary Tarun Kapoor suggested banning the use of diesel-powered four-wheel vehicles by 2027 in cities with a population of more than 1 million and pursuing efforts for transition to electric and gas-fuelled vehicles. It also recommended that city transport should be a mix of Metro trains and electric buses by 2030.

What are the positive impacts of a ban on diesel vehicles?

  • Reduce GHG emissions: The stated aim for the government would be to reduce GHG to achieve net zero emissions by 2070. The ban on diesel cars would cause a reduction in the emission of particulate matter and harmful gases & improve air quality in cities.
  • Transition to Renewable Energy: The proposed ban will significantly upscale the government’s efforts to produce 40% of its electricity from renewables. It will also help car manufacturers invest heavily in EV technology and its infrastructure.
  • Public transport: The ban on diesel vehicles would lead to high investment in public transport like electric buses, and metro as people in metro cities would prefer to commute via public transport to save time and money.

How can a ban on diesel cause disruptions in the Indian economy?

  • Impact on oil companies: A ban on diesel vehicles will have an impact on the demand for diesel fuel because India is a significant producer and consumer of diesel fuel. The prices of crude oil and diesel may decline as a result, which may have an impact on the revenue of oil-producing nations and oil firms.
  • Impact on the automobile industry: The automobile industry, which makes a considerable contribution to the Indian economy, will be impacted by the ban on diesel automobiles. Millions of people are employed by the auto sector, which also considerably boosts the GDP of the nation. An outright ban on diesel cars would result in employment losses and possibly a drop in GDP.
  • Impact on transportation: Diesel plays a crucial role in the country’s transportation system. With trucks, tractors, buses, and SUVs that transport goods depending on diesel fuel. An outright ban would lead to an increase in logistics costs and finally an increase in the price of goods. This will severely affect the agriculture and manufacturing sectors.
  • Impact on buyer: With the high cost of EV, lack of adequate infrastructure, and shortage in EV batteries, the demand for personal vehicles will be affected impacting the choice of buyer.

Conclusion:

The government should provide incentives to consumers and manufacturers to adopt cleaner vehicles. There should be significant investment in alternate infrastructure to avoid disruption in the economy. Lastly, instead of an outright ban a phased implementation of the policy would give both consumers and manufacturers time to move towards alternate and cleaner technologies

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