Mr. Anirudh Bhuwalka, MD & CEO, Asia MotorWorks Limited

There is a need to speed up the implementation of GST in order to rationalize the taxation bringing in economies but more importantly to make the long distance intercity transportation more efficient and productive, without frequent stops for local taxes and octroi duty, etc. The focus here is on ensuring a faster and more or less uninterrupted flow of traffic between cities. And a more rational duty structure that does away with multiple rates at multiple points of taxation. The phasing out of old vehicles has an effect on both safety and improved environment. Hence the suggested 10 years age limit in all A and B class cities. This would result in more modern vehicles getting inducted, and it is recommended that the Government consider incentives to minimize the initial cost of replacement. A policy for discouraging the shifting of these vehicles to smaller towns could also be put in place simultaneously in order to ensure that old, polluting and unsafe vehicle leave the system.

Newly manufactured vehicles conform to strict emission norms, but old/ existing vehicles are a major source of pollution. Here it would be ideal to raise the bar by ensuring that, by year 2010, there are no vehicles with emission norms below BS I are running in India. This would result in the need to either upgrade engines or scrap old vehicles. The cost increases due these exercises would have to be compensated by suitable incentives. The current state of economic revival is not so robust that it warrants a sudden and complete withdrawal of the stimulus package, which has worked so well for us in India. We would need to continue to keep a watch on factors that may hamper growth, especially in the infrastructure sector, which is largely dependent on Government expenditure. Our view is that the Government should continue to provide impetus to growth as Fiscal 2011 is critical for the global economy and India cannot be treated in isolation.

All steps given above are for increasing traffic fluidity and hence higher average speed of good transportation. This increase in transportation speed has to be maturely and responsibly handled. Hence there is need to focus on enhanced safety of vehicles; crash testing of all cabin alternatives to meet norms, strict adherence to wearing seatbelts, fitment of side front and rear under-run protection devices, better braking performance, etc should be mandatory and strictly enforced. With more highways and rural roads coming up, the absence of a safe regulatory environment can have drastic consequences.