SOS: Defer BS-IV and bring in Vehicle Scrappage!

04 Jul 2020 CW Team

Photo: mycarhelpline.com

Given the grievous impact of COVID-19 pandemic impacting the overall economic activities in the country, various industry organisations had sought government support by way of financial stimulus and other policy-related initiatives.

The Ministry of Roads, Transport & Highways has floated a draft document for deferment of the BS (CEV/TREM)-IV emission norms, which were to take effect on October 1, 2020, to October 1, 2021. A final decision will be taken after suggestions from stakeholders have been duly considered.

Also read: ICEMA Wins, Ban Dropped

The automobile industry produced a total 26,362,282 vehicles including passenger vehicles, commercial vehicles, three wheelers, two wheelers and quadricycles in April-March 2020, and in comparison, the Indian construction equipment industry sold 95,000 units during the same period. The collective impact of the entire construction equipment fleet in India would be just 3.6 per cent of the gross total units of the automobile industry considered along with the construction equipment industry.

Also read: BS-III ban will not apply on farm, construction equipment: Supreme Court

The objective with which the emission norms were set for pollution does not get served by getting the construction equipment industry adhering to the norms due to their extremely low penetration. Further, the enhancement of costs due to the upgrade further inhibits mechanisation, which is one of the prime objectives of Prime Minister Narendra Modi who had declared 'April 2019-March 2020' as the year of Construction-Technology and had stressed on use of advanced technology to meet the increasing demand of housing in the country caused by rapid urbanisation. The GST had been reduced from 28 per cent to 18 per cent, which had a significant boost in affordability, but this benefit would get nullified with the implementation of the emission norms.

The Vehicle Scrappage Policy, on the other hand, will provide fuel to this outcome by ensuring that vehicles which are old, and therefore would be failing in their ability to reduce the pollution, could be phased out. An HDFC Bank study has estimated the market for vehicle scrappage and recycling at $6 billion.

According to it, if the policy is defined well, 9 million vehicles could go off roads by fiscal 2021 and 28 million by 2025, largely comprising two-wheelers. It would reduce carbon dioxide emission by 17 per cent and cut particulate matter in air by 24 per cent. This would also provide a fillip to the industry too apart from contributing to bringing the cost of automobile units down due to the availability of recycling plants. Therefore, deferment of these emission norms at this juncture would be a wise move while accelerating the implementation of the scrappage policy could restore some sanity in the automobile industry.

Photo: mycarhelpline.com Given the grievous impact of COVID-19 pandemic impacting the overall economic activities in the country, various industry organisations had sought government support by way of financial stimulus and other policy-related initiatives. The Ministry of Roads, Transport & Highways has floated a draft document for deferment of the BS (CEV/TREM)-IV emission norms, which were to take effect on October 1, 2020, to October 1, 2021. A final decision will be taken after suggestions from stakeholders have been duly considered. Also read: ICEMA Wins, Ban Dropped The automobile industry produced a total 26,362,282 vehicles including passenger vehicles, commercial vehicles, three wheelers, two wheelers and quadricycles in April-March 2020, and in comparison, the Indian construction equipment industry sold 95,000 units during the same period. The collective impact of the entire construction equipment fleet in India would be just 3.6 per cent of the gross total units of the automobile industry considered along with the construction equipment industry. Also read: BS-III ban will not apply on farm, construction equipment: Supreme Court The objective with which the emission norms were set for pollution does not get served by getting the construction equipment industry adhering to the norms due to their extremely low penetration. Further, the enhancement of costs due to the upgrade further inhibits mechanisation, which is one of the prime objectives of Prime Minister Narendra Modi who had declared 'April 2019-March 2020' as the year of Construction-Technology and had stressed on use of advanced technology to meet the increasing demand of housing in the country caused by rapid urbanisation. The GST had been reduced from 28 per cent to 18 per cent, which had a significant boost in affordability, but this benefit would get nullified with the implementation of the emission norms. The Vehicle Scrappage Policy, on the other hand, will provide fuel to this outcome by ensuring that vehicles which are old, and therefore would be failing in their ability to reduce the pollution, could be phased out. An HDFC Bank study has estimated the market for vehicle scrappage and recycling at $6 billion. According to it, if the policy is defined well, 9 million vehicles could go off roads by fiscal 2021 and 28 million by 2025, largely comprising two-wheelers. It would reduce carbon dioxide emission by 17 per cent and cut particulate matter in air by 24 per cent. This would also provide a fillip to the industry too apart from contributing to bringing the cost of automobile units down due to the availability of recycling plants. Therefore, deferment of these emission norms at this juncture would be a wise move while accelerating the implementation of the scrappage policy could restore some sanity in the automobile industry.

Infrastructure Urban

04 May 2026

Jyoti Structures FY26 profit rises 56.5%

Jyoti Structures (JSL) recently reported strong financial results for the quarter and year ended 31 March 2026, driven by disciplined execution, cost management and steady progress across its order book.For Q4 FY2025-26, total income rose 44.2 per cent to Rs 2.41 billion from Rs 1.67 billion in Q4 FY2024-25. EBITDA increased 58.6 per cent to Rs 237 million, while EBITDA margin improved by 89 basis points to 9.84 per cent. Profit before tax grew 53.3 per cent to Rs 188.5 million, and net profit rose 51.9 per cent to Rs 181.4 million.For FY2025-26, total income grew 53.1 per cent to Rs 7.72 bill..

Infrastructure Energy

04 May 2026

Cat BEPU to Power Doppstadt Separator at IFAT 2026

Caterpillar’s Cat Battery Electric Power Unit (BEPU) has been selected by Doppstadt to power its SWS 6 Spiral Shaft Separator, which will be showcased for the first time at IFAT 2026 in Munich, Germany, from 4–7 May.The compact plug-and-play BEPU is designed to replace a diesel engine within the same space, using the same mounting locations and relative machine position. It integrates the battery, motor, inverter, onboard charging, cooling and controls, enabling OEMs to electrify existing chassis platforms without extensive redesign.Caterpillar and Cat dealer Zeppelin Power Systems have be..

Infrastructure Urban

04 May 2026

VECV sales rise 6.9% in April 2026

VE Commercial Vehicles, a joint venture between Volvo Group and Eicher Motors, recorded sales of 7,318 units in April 2026, compared to 6,846 units in April 2025, registering 6.9 per cent growth. The total included 7,159 units under the Eicher brand and 159 units under the Volvo brand.Eicher branded trucks and buses reported sales of 7,159 units during the month, up 6.6 per cent from 6,717 units in April 2025. In the domestic commercial vehicle market, Eicher sales rose 8.6 per cent to 6,797 units from 6,257 units a year earlier.Exports declined 21.3 per cent, with VECV recording 362 units in ..