This is aimed at incentivising people to retire their old vehicles. Sources said the contours of the initiative have been finalised. “At present, some vehicle manufacturers are giving discounts for buying new commercial vehicles after scrapping old ones. If more players make such announcements, it will motivate people to phase out old and polluting vehicles,” said a source.
Despite govt’s efforts, voluntary scrapping of vehicles has not gained pace for several reasons. So far, less than one lakh vehicles have been scrapped at registered scrapping centres and nearly 61,000 of these are govt vehicles older than 15 years. There is a target to scrap around 90,000 old vehicles by March 2025.
The govt has taken initiatives to set up 60 registered vehicle scrapping facilities and 75 automated testing stations. A total of 21 states and UTs have announced concessions in motor vehicle tax on a vehicle which is purchased against a certificate of deposit of the scrapped one.
To incentivise people, 18 states and UTs have announced a waiver in pending liabilities on the vehicles offered for scrapping at the scrapping centres.
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