Rebate of 5% on purchasing vehicles under scrappage policy: Gadkari
Union Transport Minister Nitin Gadkari has said that people who scrap their old vehicles will get a 5% rebate from the manufacturer while buying a new one under the scrappage policy. The voluntary vehicle scrappage policy aims to phase out old and unfit vehicles, thereby reducing carbon emissions, increasing fuel efficiency, and improved demand as more users would upgrade their vehicles.
'Working on setup of automated vehicle fitness testing centers'
In a conversation with PTI, Gadkari said, "There are four major components of the policy. Apart from rebates, there are provisions of green taxes and other levies on old polluting vehicles. These will be required to undergo mandatory fitness and pollution tests in automated facilities." "For this, automated fitness centers would be required throughout the country and we are working in that direction."
Vehicles failing safety tests to be impounded
The scrappage policy involves a compulsory fitness test for personal and commercial vehicles after completion of 20 and 15 years, respectively. Vehicles failing these tests will be penalized and shall be impounded. Gadkari also said that a public-private partnership (PPP) model will be used to set up the automated fitness tests, while the Centre will assist state governments and private parties for scrapping centers.
Scrappage policy will give rise to ancillary industries
Gadkari said that the policy would provide a 30% boost to the auto sector with its turnover rising to Rs. 10 lakh crore in the coming years from the present Rs. 4.5 lakh crore. He added, "This policy will increase vehicle demand which in turn would boost revenue. Also, ancillary industries would come up in large numbers thriving on junk vehicles."
Approximately one crore vehicles to be scrapped in first round
Around one crore polluting vehicles would initially go for scrapping. Out of this estimated figure, light motor vehicles (LMVs) more than 20 years old would account for 51 lakh units, while another 34 lakh LMVs would be above 15 years. The scrappage policy will also cover 17 lakh medium and heavy motor vehicles without valid fitness certificates, which are more than 15 years old.
'States should impose green tax on older vehicles'
Highlighting the role of states in the implementation of the policy, Gadkari said, "Structure and framework of scrapping policy is under work and green tax has already been notified. Many states have notified in an ineffective way." "We want to advise them through a notification under Motor Vehicles Act to consider imposing a green tax on older vehicles which cause more pollution."
