Pol­icy on Old Ve­hi­cles to Hit Road Soon

Tax ben­e­fits to be of­fered to re­place old ve­hi­cles with newer fuel-ef­fi­cient ones un­der the pro­posed pol­icy

The Economic Times - - Companies: Pursuit Of Profit - Nabeel.Khan@

timesin­ter­net.in New Delhi: In­dia’s pol­icy on the endof-life of ve­hi­cles is al­most ready and will be an­nounced in the next few months, the sec­re­tary at the heavy in­dus­tries min­istry said.

“We had in­vited ob­jec­tions and sug­ges­tions from the pub­lic and now we have com­piled them and the fi­nal ver­sion (of the pol­icy) is al­most ready,” Girish Shankar said, adding: “Very soon, it will be ac­cepted by the gov­ern­ment.” The gov­ern­ment had pub­lished a pol­icy draft two years ago, seek­ing pub­lic com­ments. The Vol­un­tary Ve­hi­cle Fleet Moderni­sa­tion Pro­gramme is aimed at en­cour­ag­ing peo­ple to scrap their old ve­hi­cles and re­place them with mod­ern, more fuel-ef­fi­cient and less-pol­lut­ing ones, by of­fer­ing tax and other ben­e­fits.

There are some 28 mil­lion vehi- cles in In­dia that are at least a decade old. In the ab­sence of an end-of-life pol­icy, most of such ve­hi­cles are now sold in the sec­ond­hand mar­ket or even left to cor­rode, adding to pol­lu­tion. Me­tals from scrapped ve­hi­cles can be re­cy­cled, in­creas­ing also the lo­cal avai- la­bil­ity of raw ma­te­rial.

The So­ci­ety of In­dian Au­to­mo­bile Man­u­fac­tur­ers (SIAM) wants the pol­icy to be im­ple­mented ini­tially based on age of the ve­hi­cle, as the coun­try doesn’t

FUEL EF­FI­CIENCY

are say­ing is based on age, if some­one wants to dis­pose of and buy a new ve­hi­cle, so there will an in­cen­tive for do­ing that,” Shankar said, sug­gest­ing that it won’t be com­pul­sory for peo­ple to dis­card old ve­hi­cles.

“In terms of the kind of in­cen­tives, from the pro­ducer side they will be chip­ping in some­thing but from the gov­ern­ment side, sub­stan­tial sup­port will be there. The scrap value will also be added to the sup­port. Then there will be some sub­sidy in the price of the new ve­hi­cle if some­body scraps his or her ve­hi­cle,” he ex­plained.

For the in­fra­struc­ture to scrap ve­hi­cles, the gov­ern­ment has done some pi­lot projects. Such cen­tres could gen­er­ate revenue on their own.

Ac­cord­ing to the pol­icy draft, the pro­gramme could ini­tially be im­ple­mented in eight states: Delhi, Maharashtra, West Ben­gal, Tamil Nadu, Kar­nataka, Gu­jarat, Te­lan­gana and Andhra Pradesh.

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