Vehicle scrap policy to go for Cabinet’s approval in a month

The vehicle scrap policy has been in the limelight for some time now. As per this policy, it will be mandatory for commercial vehicles that are more than 20 years old to be scrapped. A similar proposal on private vehicles is also being considered very seriously. It has now come to light that the proposal for the mandatory scrappage of CVs more than 20 years old will go for the cabinet’s approval next month. Union Minister Nitin Gadkari said that the scrappage of old commercial vehicles will also bring additional Rs 10,000 crore into the government coffers.

Vehicle scrap policy to go for Cabinet’s approval in a month

The vehicle scrappage policy was given ‘in-principle’ approval at a high-level inter-ministerial meeting at the Prime Minister Office. If all goes as per the plan, the scrappage of commercial vehicles (CVs) that are more than 20-years-old will start from April 1, 2020. “Old commercial vehicles are responsible for 65 percent of the vehicular pollution. The policy to scrap these has got the nod at a Secretary-level meeting at the PMO. Now stakeholders consultation will be done in a fortnight and it will go to the Cabinet in about a month’s time,” Road Transport, Highways, Shipping, Water Resources and Ganga Rejuvenation Minister Nitin Gadkari told PTI in an interview. He also said, “We are liable to give to buyers of new vehicles in lieu of the scrapped ones.” Hence, the policy will reach the GST council once it’s approved by the cabinet. The GST council will then decide the amount of concession that will be given.”I am not in a position to say the exact benefits to the buyer of such vehicle at this moment”, Gadkari said. However, several reports claim that buyers of new vehicles after scrapping their old ones will benefit from 15 to 20% concessions.

Last year, Gadkari issued a concept note on Voluntary Vehicle Fleet Modernisation Programme (V-VMP) to the Committee of Secretaries. This note was about setting up of an ecosystem wherein voluntary scrapping of old vehicles was proposed. It’s expected that the scrappage policy for the commercial vehicles will be followed by a similar policy for old passenger vehicles.

Image- TeamBHP