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
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
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.