Economic Highlight
New Delhi, 16 August
2021
Junk
Cars, Plastic Policy
INDIA
LOSES RS 11 TRILLION!
By
Shivaji Sarkar
India needs pragmatic
policies to strengthen the individual to revive the sagging economy and save
its wealth. Policies such as automobile scrappage, electric cars, single-use
plastic, heavy penalties are detrimental to the interests of the nation. The
country may have a “waste-to-wealth” mission, but it should not be at the cost
of creating junk, what already is a huge wealth.
Similarly, the policy
on single-use plastic may not be as prudent as it is being made out. In a
“plastic civilization” the flying bags or sticks for a number of products are a
problem but the nation overlooks the problem of plastic use in every product –
packaging materials, computers to cars. It is nice to synchronise with 4th
UN Environment Assembly 2019, but it is imprudent to overlook the conditions of
the country, which is reeling under severe almost poverty-like conditions. The
wealthier nations have different problems and solutions, but India must not ape
these.
Indians are trying to
come out of decades of poverty. It is a gradual process. An individual does not
transform in a jiffy. Mere change in income level is also not guarantee that
overnight he would have different economic status. It takes years to add to
wealth, may be even through a process of raising debts. The policy makers in
their hurry to project achievement ignore the tedious path that they tread.
Let us for instance
check how an individual acquires a motorcycle or car. It is certainly not
luxury in a country where public transport is rudimentary to have an automobile
to help one travel with a bit of ease. The process has its rigmarole. Not more
than a per cent of people can make full down payment. Most resort to a four to
seven years or more repayment schedule. Announcing it to be a junk in 10 years
suddenly does not add to his stability. Besides, if someone has spent a
lifetime to pay for his prized car or any other possession, who is the State or
government to declare it junk?
It is an individual’s
property, he is its custodian and nobody else without his permission can issue
an order that can be seized by a State agency without violating the basic
fundamental rights. It is ultra vires of the statute. These issues cannot be
discussed merely on legal grounds, particularly in a society where the State
agencies feel they are not answerable to anyone and if the court does that they
need not listen to it either.
It is a strange
anti-people mindset of an executive that is appointed by a government elected
by the people. It is like the servant disowning the master. Most problems that
are being heaped on the people start with this convoluted mindset.
The government’s estimates
that the scrapping policy would bring Rs 10,000 crore investments are illusory
statistics. It has ignored the fact that the total registered vehicles in 2019
were 295.8 million – 29.6 crore. In 2011, 14.2 million vehicles were registered.
In other words, these 14.2 million-- 1.4 crore vehicles, most having a fine
workable life, would now, as per the arbitrary policy of 10 years, be declared
junk. Is that rationale? This means at least 1.4 crore families would be
deprived of their wealth, which let us assume they had acquired on an average
cost of about Rs 3 lakh per family. A total cost of Rs 4.2 trillion! In
contrast for such sacrifice, if at all, the government estimates generate a
miniscule one-time investment of Rs 10,000 crore.
Is that justified?
Let us assume each year that a similar number of vehicles would be junked but
every year there would not be that Rs 10,000 crore investment. For it is a
one-time affair and that would immensely boost the profits of the automobile
companies because they would prospect not only the metal body but each workable
parts to retrofit in their new vehicles. Their profits would soar.
But the individuals
who would be deprived of their vehicles would have to now invest not less than
Rs 5.5 lakh each to remain at the same level or worse penury as the loss to the
nation would be at the figure of 2011 over Rs 7 trillion. The nation, even
assuming, that all those had vehicles would successfully acquire new vehicles
would lose a whopping over Rs 11 trillion for virtually keeping the nation at
the wealth level of 2011.
It is an imprudent
decision and must be junked by a country that is afflicted with 80 crore – 60
per cent - people sustaining on free food dole. No sane country would waste
such wealth knowing that most losing their vehicles would never be able to
purchase another in their lifetime because by these 10 years, most of the 1. 4 crore
people may have become senior citizens with neither a job nor a pension or an
income but many paying a hefty income-tax out of their savings.
Similarly,
impractical is the single-use plastic. A plastic bag or a car seat or a
computer cover cannot be recycled. The policy makers look for simplistic
solution that are neither worth its value nor useful in any other terms. But
billions are being wasted on looking for no-solution. The result is to be seen
everywhere, not only in urban areas but all across rural areas along the
highways, roads or habitats. The swachha Bharat is not becoming clean
for these reasons and the country is ready to repeat its mistakes. Plastic
disposal needs a virulent solution. This country is nowhere near it.
Look at the contrast
of e-vehicles that also use maximum plastic to keep its deadweight low. The
latest lithium-ion batteries have a life of two-three years -- or 300 to 500
chargings. If the battery is completely discharged, it can no longer be
recharged again. The e-vehicle would not be less pollutant.
And the nation is
committing yet another folly. It wants to give up diesel, the cheapest
petroleum byproduct as per international petroleum lobby decision. It would
treble crude imports and also have to look for diesel disposal system. Yes, the
policy makers are committing too many silly mistakes. Let India have its own policy
and not follow the western sharks so that it is easy to tread a path to
prosperity. ---INFA
(Copyright, India News & Feature
Alliance)
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