Fresh registrations for diesel cars in Delhi have been postponed until January 6 by The National Green Tribunal, apparently in a bid to impose complete banning. The Supreme Court will hear a plea against private ownership of diesel vehicles on 15 December.

Delhi has been reported to experience a hazardous level of air pollution due to diesel emissions, construction dirt and the burning of crop stubble in farms around the city. Air pollution in Delhi has been recorded 40 times compared to World Health Organization (WHO) recommended level, during the Diwali night, last month, reports BBC .

In India, new car sales are soaring up and around 1400 cars add to total car population in Delhi, every day, on average. Aggrieved National Green Tribunal announced complete banning on diesel car registration in Delhi from January 1, 2016, one step ahead of Delhi Government that allowed private diesel run vehicles plying in alternate days.

However, due to ongoing registration pausing, huge inventory, worth around Rs 1000 crore, has started to pile up. The carmakers, Mahindra & Mahindra, Toyota, Tata Motors, Ford, Nissan and luxury makers Mercedes Benz, BMW, Audi, all have enrolled themselves in the list of stock piles owners, reports The Economic Times .

NGT’s banning has prompted some new car buyers either to register from outside Delhi or to cancel purchase order opting for a petrol run car instead. The situation has been termed ‘tough’ by a top official with one of the luxury carmakers, seeking anonymity, reports Times of India .

Delhi contributes 7% to total sales of cars and SUVs, around India. India, itself, is one of the largest markets for Premium and higher variant models. Around 36% cars sold in the city have diesel engines while in case of SUVs and utility vehicles, this figure remains as high as 90%.

However, Kejriwal’s Delhi government is set to face hurdles in achieving VAT revenue targets of RS 24000 crore, of which RS 13000 crore has already been collected with more than six months left.

Delhi Government posts around RS 2500 crore VAT earnings a year from registration of petrol and diesel cars. The state exchequer earns another Rs 2500 crore as VAT on sale of petrol and diesel. With slashing down VAT earnings, Arvind Kejriwal’s electoral welfare pledges are about to face a huge blow.

Concerns over rising air pollution and keeping the coffers full- two major issues need to fight for, by the Delhi Government. But since air pollution has reached to its hazardous level, a single path left for Kejriwal government to choose.

while discouraging diesel run cars, it may be suggested to opt for petrol run cars by the government which may provide more transport buses for the city dwellers.