Government of Punjab plans to impose a ban on operation of diesel buses in the major cities of Punjab. This purposed ban will be operative subject to the approval of the competant authority, keeping in view the rising enviornmental pollution as well as noise pollution.Unfortunately, diesel buses in the province are not economically viable due to repeated escalation in the price of POL/Diesel which results into increase in the fare of transport in the cities and across the province. The Government of Punjab has a time-bound programme to phase out conventional diesel engine buses with the CNG fitted buses. This is primarily being done for well-known environmental considerations starting from Lahore.
In a meeting held on the 17th April, 2007, under the chairmanship of the Minister Industries, it was decided that PSIC should launch a pilot programme initially for Lahore and Multan for the conversion of diesel buses into dedicated CNG buses with a loan portfolio covering 40 buses, @ Rs 6.0 Lac per bus with interest rate of 5.5% per annum. The scheme has been widely welcomed by the transporters and is presently operating successfully.