New Delhi, April 29 (IANS) The leading automobile manufacturers body on Friday said that the ban on diesel passenger vehicles of 2,000 cc and above can deeply dent the country's global image as an investment destination.
According to the Society of Indian Automobile Manufacturers (SIAM), the ban on diesel passenger cars of 2,000 cc and above has given the impression of an unstable policy regime.
"It gives an impression that there is no stability or predictability in the policy regime which will deeply dent the country's global image as an investment destination and the 'Make in India' priority," SIAM said in a statement.
"Many auto MNCs (multinational corporations) have already taken a decision to freeze further investments in India until complete clarity is achieved on key policy issues which can have a bearing on their business prospects in India."
The ban is being exercised by the Supreme Court on diesel passenger cars of 2,000 cc and above engine capacity.
SIAM said that currently all diesel cars being manufactured are compliant to the current emission norms set by the government.
"The automotive industry has made significant investments in diesel technology which are in accordance with the investment policies of government," the statement said.
"As such, putting any restrictions or bans on a legally compliant industry is tantamount to an infringement of the fundamental right to do business in the country."
The industry body further said that the ban is not expected to achieve the desired objective of reducing pollution, but will vilify diesel technology which has gone through a major transformation over the last 15 years.
"A ban on BS IV diesel cars legally encourages old and highly polluting vehicles not meeting the current emission norms, to continue plying on the road, while not allowing new vehicles compliant with current emission norms to be used," the statement added.
"This is contrary to the objective of the ban."
