Consumer Issues
4 Reasons To Scrap Old Vehicles
Even though many overage motor vehicles are in good condition, they must be phased out
 
Consider this: Should vehicles over a particular age be scrapped? Should they be permitted to operate in urban areas already suffering from massive air pollution and allied issues like heavy traffic congestion and lack of parking space? This writer’s opinion is a resounding YES to the 1st question and NO to the 2nd; even though many over-age vehicles are in good condition. Here are some solid reasons why:
 
1. Pollution from automobiles is caused by many reasons; the top four are: faulty road engineering, bad fuel, terrible maintenance and obsolete vehicle technology. Since the first three are not likely to see much improvement soon, it is left to the fourth—technology evolution with vehicles of all sorts—to provide a higher-than-global-standards solution. In other words, vehicular technology in India is moving ahead so rapidly that anything over 10 years is not just passé but also chucking out a lot more from the tailpipe than just reasonably safe fumes.
 
2. A 10-year-old diesel vehicle, whether used heavily or not, has suffered extremely high wear & tear across a large number of moving parts. And diesel engines, by their very nature—being far more complex than petrol engines—are susceptible to far worse after-effects of this wear & tear. Apart from a very noticeable drop in power output, an older diesel vehicle—unless perfectly maintained—will also release a lot more by way of pollutants into the air. By some estimates, the drop in mileage as well as the increase in emissions, is to the tune of 30%. Put together, disaster.
 
3. As of now, there is no regulation on how often, or when, the catalytic converters in vehicles need to be replaced. There is some reason to believe that catalytic converters are removed from new motorcars by crooked mechanics just so that they can get to the expensive metals and alloys found inside which have a ready market for a variety of uses. Likewise, other safety features, like seat-belts and ABS, tend to degrade with age and replacing them may either be very difficult and expensive or close to impossible.
 
4. Within the Indian context, second-hand and other used vehicles tend to move into the private and illegal taxi business, where they are used in a variety of ways—almost all detrimental to the larger common good. Removing such vehicles by age from urban areas to smaller towns, where everybody knows who owns what, is a simple law-and-order solution, too, especially when old and overage private taxies in urban areas are amongst the heaviest polluters.
 
The protest from people stuck with overage vehicles is that they maintain them well and see no reason why they should have to sell them. I operate a 2004 Skoda diesel myself which is still in great shape. It will now go for scrap value. The solution is simple: buy new, smaller, modern vehicles. 
 

Come On, Karnataka!

The out-of-state vehicle issue has come to the fore again in Karnataka. Any vehicle, which spends more than a month (30 days) in Karnataka, for any reason, has to a pay lifetime road tax and, if planning to stay longer, also has to get re-registered. Apart from being a huge fiscal drain on the pockets, this also means that people pay lifetime tax for the same vehicle twice—and all this under the strength of a Motor Vehicles Act which is supposed to be all-India and under the Central government.
 
This is akin to paying income-tax twice because you work in one state and live in another. 
One can understand a period of one year, which is what the original Motor Vehicles Act envisaged, as the marker for deciding where a vehicle has to be registered. But only 30 days? Come on, Karnataka! Sometimes, people stay longer for tourism, medical treatment or simply because they are visiting family and friends. 
 
(Veeresh Malik started and sold a couple of companies, is now back to his first love—writing. He is also involved in helping small and midsize family-run businesses re-invent themselves.)

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COMMENTS

Chandragupta Acharya

2 years ago

It is na├»ve to assume that everyone can afford a new vehicle. And even if one can, every rupee spent on a new car is a rupee NOT spent on something else (or invested). Just because you have given up on first three of the “top four” reasons for causing pollution from automobiles does not mean those who own old vehicles should be punished. A blanket ban on old vehicles is a violation of a fundamental right, because no such limitation existed when the buyer purchased the vehicle.

Anand Vaidya

2 years ago

There is NO government in Karnataka. Only a bunch of vested interests and lobbies. So is it any surprise that they need "more money" for dangerous schemes such as "shadi bhagya" "anna bhagya" etc?

Mukund Rajamannar

2 years ago

We seem to be ignoring the ROI in running a commercial truck. Breaking even takes a while. The profit after maintenance is low.

Private vehicles -- not everyone can afford a new vehicle with the inflated rates in India. Lets look at the tax component of a new car. If we are to move in the direction of the US economy with regard to vehicles, then lets match their tax rates on vehicles and their cash for clunkers (CARS) program.

Public transport is broken in cities. If we had efficient public transport, people will use them instead of driving inside the city.

This is a multifaceted problem and we are trying fixes that don't address the bigger issues. How many rapes did the ban on sun films stop? What was the impact on fuel and pollution due to that ban?

Nifty, Bank Nifty still on course to head higher – Tuesday closing report
Nifty has to stay above 8,300 and Bank Nifty above 18,400 for the upmove to continue
 
We had mentioned in Monday’s closing report that CNX Nifty may be headed higher. The index opened higher and a range bound session for short while the index moved in the green and stayed from 10.25 am to 11.50 am. Then the index moved into red and was pulled lower further, managed staying above Monday’s low.
 
S&P BSE Sensex opened at 27,561 and moved in the range of 27,338 and 27,604 and closed at 27,440 (down 50 points or 0.18%) while Nifty which opened at 8,338 moved between 8,281 and 8,356 and closed at 8,325 (down 7 points or 0.09%). Bank Nifty opened at 18,500 and moved to a low of 18,397 from a high of 18,563 and closed at 18,471 (down 30 points or 0.16%). NSE again recorded a low volume of 69.25 crore shares. India VIX rose 0.33% to close at 17.3650.
 
The total revenue earnings of Indian Railways rose by 12.16% during 2014-15 to Rs157,880.50 crore. It also managed to improve efficiency by recording 91.8 operating ratio during 2014-15. The ratio reflects spending over its expenditure. It has improved from 93.6 during 2013-14.
 
The government has initiated a large number of reforms in its first year of governance to encourage investments and the country has the potential to grow at 9%-10%, Finance Minister Arun Jaitley claimed. Meanwhile, tax arrears towards central excise rose to Rs59,309 crore in 2013-14, from Rs45,463 crore a year ago, government auditor CAG said today.
 
Arun Jaitley sought closer engagement of the Asian Development Bank for development of smart cities, industrial corridors and railways in the country on Monday. Jaitley urged the ADB to aim at an annual business of $20 billion by 2020.
 
Jubilant Life Sciences rose 19.56% to close at 183.35 on the BSE. There were reports that around 86 lakh shares changed hands in two block deals in the price range of Rs150-154. It was the top gainer in the ‘A’ group on the BSE. 
 
PMC Fincorp fell 8.04% to close at Rs15.45. It was the top loser in the ‘A’ group on the BSE.
 
Sesa Sterlite rose 6.64% to close at Rs226.40 on the BSE. It was the top gainer in the Sensex 30 pack. HDFC fell 1.88% to close at 1,179.70 on the BSE. It was the top loser in the Sensex 30 stocks.
 
On Monday US indices closed in the green after data showed that factory orders rose 2.1% in March, in line with market expectations.
 
The Asian indices which were trading today showed mixed closing. KLSE Composite (0.50%) was the top gainer while Shanghai Composite (4.06%) was the top loser.
 
There were media reports of crackdown on margin financing which added to already existing worries about the slowing of Chinese economy and the prospect of new initial public offerings sucking liquidity out of the market.
 
China's FDI grew 3.7 per cent to $128.5 billion in 2014, the ministry said in an online statement. This compared with earlier government figures that showed FDI grew 1.7 per cent to $119.6 billion last year.
 
European indices were mostly trading in the red as were the US Futures. Investors remained cautious amid ongoing Greek debt negotiations. Greece's debt crisis was back in the spotlight as the anti-austerity government continued bailout talks with its eurozone lenders. The Greece government is facing a 750 million euro ($832 million) debt repayment to the International Monetary Fund next week, but there are fears it will run out of cash unless it reaches a deal with creditors to unlock the next tranche of bailout money. 

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Ford Foundation-funded NGOs not registered under FCRA: Minister
The Ford Foundation had funded some NGOs which are not registered under the provisions of the Foreign Contribution (Regulation) Act (FCRA), 2010, as well as the Sabrang Trust which is linked to activist Teesta Setalvad, parliament was told on Tuesday.
 
"There are inputs from security agencies that some amounts have been credited from Ford Foundation to some NGOs which are not registered under the provisions of FCRA, 2010. Hence, to keep a watch on such recipients, the credits from Ford Foundation have been put under prior permission category under FCRA, 2010," Minister of State for Home Affairs Kiren Rijiju told the Lok Sabha.
 
Setalvad is associated with two NGOs, namely Citizen for Justice and Peace, and Sabrang Trust, which are registered under FCRA, 2010. As far as funding from Ford Foundation is concerned, only Sabrang Trust has been funded, he said.
 
Last month, the government put international donor Ford Foundation on the watchlist for funding organizations not registered under the FCRA.

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