Green panel suggests cut in diesel subsidy

By IANS

New Delhi : An environmental panel told the Supreme Court Friday that the hefty subsidy on diesel prices had led to massive increase in diesel-driven cars, leading to rise in pollution levels in the national capital and asked that the subsidy be cut.


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A bench of Chief Justice K.G. Balakrishnan and Justices Arijit Pasayat and S.H. Kapadia issued notices to the union ministries for surface transport and for environment and forests on the suggestion by the Environment and Pollution Control Authority (EPCA). The special bench asked the ministries to file their replies within three weeks.

Quoting from the EPCA report, senior counsel Harish Salve, appointed by the bench as its amicus curiae, said the subsidy on diesel had resulted in huge disparity between petrol and diesel prices.

The low price of diesel has resulted in many people opting for diesel vehicles, said Salve.

From 200,000 diesel-driven cars in 1995 in Delhi, the number has risen to over 1.2 million now. This in turn has resulted in heavy pollution in the national capital, he said.

Salve suggested to the court that the government abolish the dual pricing for petrol and diesel by curtailing the subsidy on diesel.

Senior counsel Fali S. Nariman suggested an Ahmedabad-style of public transport system in Delhi with the joint participation of the public and private sector.

Pointing out that after Blueline buses are phased out from Delhi roads the city would need almost 10,000 new buses, Nariman suggested that the government rope in big industrial houses like Tatas to run a pollution free and efficient public transport system.

Nariman also suggested that phasing out of vehicles older than 15 years should be considered seriously.

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