Budget 2016: Analysis on Environment and Transport sector

Dr Arindam Datta, Fellow, Earth Science and Climate Change DivisionTERIThe Union budget 2016-17, addresses the key issues of Indoor Air Pollution in Rural Households by emphasising on improved access of subsidized LPG to BPL rural families. A budget allocation of Rs 2000 crore has been made. Given the practical difficulties of putting in place the supply chain, it would have been more prudent to also focus on other options, including improved cookstoves. Similarly, while the speech aims at 100% electrification of all electrified villages by 2018, the reality in many remote areas is that provision of connectivity is in no way a guarantee of regular and reasonable quality power supply. Hybrid solutions which enable the use of solar energy would have been a more reliable and sustainable option besides helping meet the target of solar power.On the transport sector, the Minister has suggested necessary modifications in the Motor Vehicle Act, to improve public transport through entrepreneurship. A 1 per cent infrastructure cess on all cars and an additional 2.5 per cent tax on diesel cars of all capacities was announced. There will an additional 1 per cent tax on luxury cars and 4 per cent on SUVs. The two measures combined together can substantially improve public transportation sources in urban areas of properly planned. Projects under ‘AMRUT’ must include multimodal mass transportation systems as an essential part of the urban renewal strategy.