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New scrappage policy likely to take old CVs off road: Report

The policy will reportedly mandate a hike in registration renewal fees for vehicles older than 15 years.

December 30, 2019 / 11:52 AM IST

India's vehicle scrappage policy will likely focus on taking old commercial vehicles (CVs) off the road, Mint reported.

The Cabinet is expected to give the green signal for the policy soon, the report said.

“The policy has been finalised and we are waiting for the Cabinet’s approval, which is expected soon,” an official told the paper.

The policy will mandate a hike in registration renewal fees for vehicles older than 15 years to encouragement their replacement, the report said.

Moneycontrol could not independently verify the story.

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Finance Minister Nirmala Sitharaman announced a scrappage policy in August, along with a number of other measures to help the ailing auto sector.

The plan will give a boost to the commercial vehicle industry’s economic activity and freight movement, an official told Mint.

“The idea is to take old, polluting ones off the roads as they are major contributors towards pollution," the official added.

The Centre has decided against offering incentives as a part of the policy. However, state road tax will be exempted on presenting scrap certificates while buying vehicles, an official told the publication.

“Incentives, if any, will have to be offered by the OEMs (original equipment manufacturers). The only form of incentive will be exemption from road tax (a state subject). Besides, there could be some discounts on purchase on a new vehicle upon showing the scrapping certificate," the official said.

A Tata Motors spokesperson told Mint that the draft guidelines on AVSF (authorised vehicle scrappage facility) were a welcome move. But, the government will have to outline incentives for customers and regulatory norms for disposal of older vehicles, the spokesperson added.

“In light of this, we will have to assess the impact of released guidelines in the current form on new vehicle demand. To achieve the end objective, there is a need to address the criteria to define end-of-life vehicles, incentives for customers and dismantlers, and a mechanism to ensure adherence," added the Tata Motors spokesperson.
Moneycontrol News
first published: Dec 30, 2019 11:52 am

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