Delhi Cabinet on December 24th decided to levy an environment cess of 25 paise per litre on diesel. It has also decided to set up an Environment Cess Fund to help bring in a “clean air” policy. After the Cabinet meeting, Chief Minister Sheila Dikshit said the Capital’s ambient air quality had been a major concern for people and therefore efforts for controlling air pollution from vehicular emissions were being streamlined. A notification in this regard is expected soon. Arguing that the price for a litre of diesel was the lowest in Delhi, Ms. Dikshit said the Cabinet had also decided to request the Union Petroleum and Natural Gas Ministry for introduction of 50 ppm sulphur diesel in the National Capital Region by 2008-09. It has also decided to commission an adequate number of Pollution Under Control centres at all the 19 border points to prevent entry of polluting vehicles into the Capital.Besides, a financial package to encourage replacement of diesel-driven goods vehicles plying on local permits by new vehicles plying on CNG was also discussed by the Cabinet. The financial incentive under the plan could be in the form a direct subsidy on the capital cost of the vehicle and reimbursement of an amount equivalent to VAT.The decision to impose the cess on diesel comes hot on the heels of a report by the Centre for Science and Environment warning that even Euro I and II diesel cars spew several times more toxics than their petrol versions. It had added that Euro-III diesel cars emit 7.5 times more toxic particulate matter compared to petrol cars.The CSE had based its study on actual emissions data available from Automotive Research Association of India. Stating that one diesel car is equal to 7.5 petrol cars in terms of particulate matter and three petrol cars in terms of nitrogen oxide emissions, it had stated that air toxics from a diesel car were also harmful and carcinogenic.