The Hindu Business Line : Other side of auto revolution

For long, there were only three models of cars on Indian roads — Landmaster/Ambassador, Fiat and Standard. All this has changed, as Suzukis, Hyundais, Fords, Chevrolets, Mercs and BMWs jostle for the limited road space. This is thanks to the completely changed government policy that has opened up the country, and the growing affluence of the middle-class, supported by the availability (till recently) of cheap funds.

Cost of development

This revving up of the auto sector is at the same time astounding and paradoxical in the context of lack of infrastructure, spiralling fuel cost and pollution problems.

The condition of the country's roads, most highways even, is abysmal. Happily, the powers-that-be have been jolted into action. The Planning Commission recently approved National Highway Development Programmes III and IV that will involve building 10,000 km of roads in addition to double-laning 20,000 km of single-lane carriageways.

Of graver urgency is that India produces limited quantities of crude oil relying mostly on imports. With West Asia becoming volatile, supplies could be hit. Indeed, it is a question of when crude oil prices will touch $100 a barrel. Yet, on political compulsions, the Government is unable to pass on the burden to the users.

No real check

As for the pollution issue, the Government has set standards for emission but may need to raise the bar to the levels that prevail in the West. Surely measures can be thought of to curb petrol consumption though there may be problems of implementation. Some of the solutions, though radical, could be: (a) allowing on alternate days vehicles with registration numbers ending in odd and even digits (the authorities must guard against unscrupulous elements with two sets of number-plates); (b) rationing petrol (though this will encourage black-marketing); and (c) declaring one day in a week as vehicle-free, except for emergencies (political parties may not like this bandh). The government must also upgrade infrastructure, especially the roads. It must insist that the automobile industry does not introduce fuel-guzzlers. Tightening up further the pollution norms for auto-makers, it must also ensure that quality fuel is made available.

(The author, a former company secretary, is a freelance writer.)

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