Subsidy fuel for clean air - Transport unions threaten to move apex court
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21/07/2008
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Telegraph (Kolkata)
JAYANTA BASU
The environment department will be drafting a package of incentives to make the city's transport lobby fall in line with its clean-air notification that the high court converted into a verdict last Friday.
Transport unions have threatened to contest the order in the Supreme Court, saying they would need substantial financial support to obey it.
"We are unhappy and contemplating going to the apex court. If replacement of old vehicles has to ultimately take place in accordance with the high court's directive, then the state needs to come up with a financial package and rehabilitation plan,' said Swarnakamal Saha, the president of the Bengal Bus Syndicate.
An environment department official said the proposed incentive scheme would be sent to the finance department for approval after finalising it in consultation with the transport authorities.
Cities like Delhi, Bangalore, Hyderabad and even Surat already have schemes to encourage transport operators to replace commercial vehicles that have logged 15 or more years on the road and switch to cleaner fuel.
Bimal Guha, the general secretary of the Bengal Taxi Association, made a case for low-interest loans. "More than financial subsidy, we want the government to organise hassle-free bank loans with low interest rates for us because we often face problems in procuring one.'
The unions will submit representations to transport minister Subhas Chakraborty soon.
According to a conservative estimate, replacing all commercial vehicles that are 15 years and older by March 31 next year and converting autorickshaws to LPG or CNG-compliant engines will cost in excess of Rs 1,000 crore. It would cost a bus or truck owner Rs 9-15 lakh to replace the vehicle, while the estimated price for engine conversion is around Rs 1 lakh.
"We are aware of the socio-economic implications of largescale conversion and will take the help of experts, if required, to draft the financial plan. We had extended similar financial support to industrial units switching from coal to oil,' said Biswajit Mukherjee, the chief law officer of the environment department.
Environment secretary M.L.Meena said the transport unions must not jump to conclusions. "As we did for autos (the department had given Rs 2 crore to the transport department for subsidies on conversion), similar incentives and low-interest loans will be considered to facilitate largescale replacement of old vehicles.'
But Saha said the unions had reasons to be sceptical. "In a recent meeting, the transport minister offered a subsidy of Rs 20,000 for replacement of an old bus and Rs 5,000 for other vehicles, which is inadequate.'