Tractor makers' shares rise as SC exempts them from BS-IV norms
The Supreme Court (SC) has passed the order that tractor manufacturers will be exempt from the Bharat Stage-IV (BS-IV) emission norms. This means that tractor makers can continue to sell BS-III tractors in the market. The Supreme Court on March 29 had passed the verdict banning the sales of all BS-III vehicles after March 31.
A two-judge Supreme Court panel headed by M B Lokur orders tractor, farm-equipment makers are exempt from BS-IV vehicle emission norms.
The government said that it is finalising new emission norms for tractors. This comes as a great relief to tractor manufacturers.
Tractor and construction-equipment makers say in the court that Bharat Tractor Emission Norms (TREM-IIIA) and Construction Equipment Vehicles (CEV) norms apply on them and not BS-IV norms applicable for two- and four-wheeler vehicles, according to a Bloomberg report.
Many tractor makers saw a rise in their shares after the SC decision to exempt tractor makers from the BS-IV order. Mahindra shares rises 1.9%, while Escorts jumps 3.4% intraday to highest since at least January 1991.
Mahindra & Mahindra shares on BSE trade up 1.50% or Rs 11.70 at 12:40 hours, at Rs 1,334.70 per piece.
Eicher Motors too was trading up 2.55% or Rs 657.70, at Rs 26,495.15 per piece. Escorts Ltd shares were also trading up at 2.41% or Rs 14.30, at Rs 607.20 per piece.