Delhi Diesel Ban Lifted as Automakers Agree to 1% Green Tax

To curb the air pollution, India’s Environment Court (National Green Tribunal) had previously imposed a ban on the registration of diesel engine cars in Delhi over 2 liter capacity, claiming that they are major pollutants.

NEW-DELHI (Sputnik) — Delhi's diesel car drivers and auto-makers had a big as the Supreme Court today lifted the ban on the registration of Diesel cars with more than 2000 cubic capacity (CC) engine capacity.

However, manufacturers and dealers will have to pay a 1% green tax to compensate for polluting the city's air, the Supreme Court ruled.

Shares of Indian Automobile companies Tata Motors and Mahindra & Mahindra gained 2.5 percent and 2 percent respectively as the news came in.

In December 2015, the Supreme Court banned the registration of large diesel cars  with an engine capacity of more than 2000 CC in Delhi to control air pollution.

The nation's highest court heard the plea of the German car-maker Mercedes Benz which was pursuing lifting the ban on large diesel engines as most of their cars fall under the banned category. Earlier this week, the company said it was willing to a  pay one percent environment tax on the sale of diesel cars if the ban was lifted.