GS Mains Model Question & Answer: Examine the implications of BS-VI norms on both for oil marketing companies (OMCs) and consumers ? Comment

Q. Examine the implications of BS-VI norms on both for oil marketing companies (OMCs) and consumers ?. Comment

Model Answer:

Examine the implications of BS-VI norms on both for oil marketing companies (OMCs) and consumers ?.

Bharat stage norms, based on European regulations, are emission standards decided by the government to regulate the amount of air pollutants from vehicles.

Implications of the pre-implementation of BS VI:

1. Put a lot of pressure on the auto firms and even the oil companies : By skipping an entire stage of emission norms from BS-V stage to BS- VI

2. Investment and time:will be more.

2. Negative impact on sales : decreasing their revenue.and bring slowdown in economy.

3. Technology upgradation issue:OMC needs to upgrade their technology according to new norms which require manpower and technology.

On consumers , the impact will be:

1.Government subsidizes the investment for up gradation to BS VI but the amount would have to be in turn be borne by consumers.

2. The new customer’s entry would be halted who would either postpone or cancel their purchase of automobiles.

3. Well this would certainly improve the environment and surrounding air. The amount of respiratory diseases would cut down, people could experience lesser climate catastrophe as an indirect effect.

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