Move to replace diesel LGVs with CNG vehicles fails

  • 19/05/2008

  • Hindu (New Delhi)

The Indian Foundation of Transport Research and Training (IFTRT) has said that the Delhi Government's policy to give tax incentive to owners of diesel-run light goods vehicles (LGVs) if they bought CNG-run LGVs in order to make the Capital's air cleaner has failed to evoke any response from the truck operators concerned. According to the IFTRT, the Delhi Government had launched a scheme in February asking truck owners, who were operating 13 to 15 years old LGVs, to buy CNG-run LGVs on a voluntary basis and avail themselves of the Value Added Tax waiver. This was done to initiate phasing out of diesel-run commercial vehicles that have an adverse impact on cleanliness of air. However, till April 30, the last day for availing of the scheme, there was virtually "zero response' from owners of diesel-run LGV owners, it said. IFTRT's senior fellow and coordinator S.P. Singh said while the scheme had economic benefits for the new buyers, these have been off set because of various factors including "incentive for over-loading', corruption and low carrying capacity of CNG-run LGVs. Anybody availing of the scheme would stand to gain anywhere between Rs.84,000 and Rs.90,000 due to tax waiver, said Mr. Singh. Further, he added that by saving Rs.18.70 per litre on fuel due to shift from diesel to CNG and running an estimated 150 km a day, the truck owner would stand to gain Rs.1 lakh per year. Thus, in the next six years, the owner would be in a position to recover the cost of the vehicle. But, added Mr. Singh, a CNG-run LGV of 6,140 kg gross vehicle weight (GVW) can carry only 2,680 kg payload with 3,460 kg kerb weight (or its own weight), while a diesel-run LGV of 6,140 kg can carry 3,680 kg payload on the same GVW. This means that a CNG-run vehicle would have to make more trips for carrying the same load than a diesel-run vehicle. This, in turn, leads to the temptation of overloading and also keeps the truck owners, who have 13 to 15 years old vehicles, from buying new CNG-run vehicles, said Mr. Singh. According to Mr. Singh, the Government would have to adopt punitive road tax regime in order to curb the menace of overloading and plying of polluting commercial vehicles in Delhi.