India may soon scrap vehicles which are over 15 years old. Indian Minister for Road Transport and Highways Nitin Gadkari has said that the proposed vehicle scrapping policy is almost ready and soon vehicles older than 15 years could be scrapped, news agency IANS has reported. The scrapping policy is being prepared along with Niti Aayog.
“The government is considering tax benefits for scrapping 15-year-old vehicles. For this, it may approach the Goods and Services Tax (GST) Council. The government has been working on formulating a vehicle scrapping policy to reduce fuel-guzzling and polluting old models, to recycle and bring down the cost of components and to make transport green and cost-effective,” IANS report said.
“We have a Rs 4.5 lakh crore automobile industry. The scrapping of old vehicles would fetch us plastic, rubber, aluminium, copper and steel. The waste coming out from scrapping units in ports and automobile clusters would bring down the cost of raw materials and spare parts. This would boost our exports,” the Minister said, as reported by IANS.
The government has been planning to scrap all Medium and Heavy Commercial Vehicles (MCHV), which account for 2.5% of the country’s total vehicles but contribute over 60% of the air pollution.
“The government may provide incentives to vehicle owners like payment of scrap value and discount from auto majors at the time of purchasing a new vehicle after scrapping the older one,” IANS reported.