Monday, June 14, 2021

Govt to announce incentives for scrapping old vehicles soon: Giridhar Aramane

New Delhi: Incentives as part of the vehicle scrapping policy is in the works, and could be unveiled in the next two to three weeks, a senior government official has said.

The transport ministry, which is charting out the details of the vehicle scrapping policy announced in the budget for FY ‘22, will soon announce the details, Giridhar Aramane, Secretary, ministry of road transport and highways, told reporters here on Friday. “The incentive structure is the the works,” Aramane said. He, however, did not divulge any details of such incentives.

A disincentive as part of the scheme has already been announced in the form of a green tax to be levied on vehicles older than 15 years. Besides, the government is likely to increase the cost of renewal of registration of personal vehicles, and fitness certification fee for commercial vehicles, in a bid to discourage older vehicles from plying on the road.

Aramane said that while the scrapping policy will be voluntary in nature, if a highly polluting vehicle fails the automated fitness certification test, which will be mandatory the owner will have to scrap the vehicle. He added that another motive behind the scrapping policy, would be road safety.

“Older vehicles do not have airbags, seat belts, nor do they follow the latest crash norma which are in accordance with the European standards,” he added.  The government is also planning to integrate auto scrapping with scrapping of ships, Aramane said. “A ship recycling industry is already in place, so we can see if the two industries can be integrated,” Aramane said.

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