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Last Updated : Jan 08, 2018 05:32 PM IST | Source: CNBC-TV18

Road ministry likely to push for 'mandatory' phasing out of old trucks, buses

According to sources, the Ministry is considering hardening its stand on scrapping old trucks and buses by setting 15-years or 20-years as upper age cap.

Ronojoy Banerjee

Moneycontrol News 

The Road and Transport Ministry is likely to push for 'mandatory' phasing out of old truck and buses from Indian roads, reports CNBC TV-18. 

According to sources, the Ministry is considering hardening its stand on scrapping old trucks and buses by setting 15-years or 20-years as upper age cap. However, it is yet to take final call.

The move will affect over 11 lakh trucks and buses plying on Indian roads. The National Green Tribunal (NGT) has already imposed ban on trucks, buses above 15 years in New Delhi.

Old cars will remain out of the ambit of this new policy, which is likely to be announced in next six to eight weeks, according to sources.

Sources say the Road Ministry may write to the Finance Ministry for GST benefits for replacements of old CVs "with or without incentives".

While the Road Ministry is still mulling over the upper age cap limit, sources say that majority of the Voluntary Scrappage Policy is likely to remain voluntary.

The move is likely to be a big boost for Tata Motors, Ashok Leyland, Mahindra & Mahindra as it would create new demand for trucks and buses.

Earlier, Road and Transport Minister Nitin Gadkari had said that a draft policy for scrapping old vehicles was prepared and presented to the Cabinet. The government had also appointed a management consultancy to come up with a policy which entitles those disposing their old vehicle to a discount while buying a new one.

In September last year, Gadkari had said that the government would start a vehicle scrappage scheme as soon as it gets a go-ahead from the GST Council.

“We have requested the Finance Ministry to find a way out for including the scrapping policy in GST council. Once that comes into effect we can further develop the Kandla auto cluster in Gujarat”, added Gadkari.

The Society of Indian Automobile Manufactures (SIAM) has been pushing strongly to implement a scrappage incentive scheme that will push out 15-year-old polluting trucks and buses out of the market and generate demand for new trucks.
First Published on Jan 8, 2018 05:22 pm
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