New investments in India's auto sector have stopped in the last 6 months in view of directions by courts and tribunals to ban big diesel engine vehicles, Parliament was informed today.
It seems the auto industry is skeptical on the sustenance of the existing policies of the government in the light of the direction of High Courts and Tribunals, Minister of State Heavy Industries and Public Enterprises Babul Supriyo said in a written rely in the Rajya Sabha.
"Decisions on new investment in the entire automotive sectors across the country has certainly stopped for the last six months as it seems auto industry is skeptical on the sustenance of the existing policies of the government in the light of the recent direction by Hon'ble Courts and Tribunals," the minister said.
He said the Department of heavy Industries had submitted an affidavit to the Supreme Court, which had on December 16, 2015 banned sale and registration of new diesel vehicles of engine capacity of more than 2,000 cc, to modify the order.
The minister further said the department had also submitted to the apex court that BS IV emission norms in the most stringent norms in the country and to ban a category of vehicle which is meting the stringent emission regulations and all other laws and regulations of the country is unjustified.
Supriyo further said a circuit bench of the Southern Bench of Green Tribunal had already banned sale of new 2,000 cc and above diesel cars in Kerala in May. However, a stay on the same was granted by the Kerala High Court and the matter is again to be heard in Kerala by the NGT Circuit bench.
He further said the government has submitted before the NGT not to apply any restrictions on sales and registration of new vehicles, which are complying with the statutory emission norms irrespective of fuel used, in any city.