Road Transport Ministry proposes new scrapping policy for old vehicles in India

Team OD  /
21 Jan 2016 14:51:22 IST

The Ministry of Road Transport and Highways (MoRTH) is planning to formulate a new standardised 'end of life' policy for scrapping of old vehicles in India.

According to the proposal, buyers can availa 50 per cent rebate on excise dutyon purchase ofnew vehicles in exchange of their old vehicles. The regulation will also list out what kind of vehicles are eligible to be scrapped. Automobiles that are fully operational and BS-III norms compliant will be exempted while vehicles which are found to be polluting or are non-operational will go through the city-specific/state-specific regulations and be sent forscrapping. The proposal also includes plans to set up five scrapping centres with a capacity of recycling up to five lakh vehicles. The first centrewill be set up in Delhi within two years.

Premier Padmini taxi

Another aspect that the new policy will address is the excessive paperwork that is required for de-registering a vehicle. The Ministry plans to make the process simpler by eliminating the need for car owners to "run from pillar to post while visiting road transport offices," according to an Ministry official.

The proposal also includes provisions for offering incentives for discarding old automobiles - the Ministry has proposedtax exemptions of up to Rs 30,000 for passenger vehicles and up to Rs 1.5 lakh for commercial vehicles.

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