Old Vehicles’ ‘End of Life’ Policy Draft is Ready, Says Gadkari

The draft for end of life policy for vehicles older than 10 years is ready, Road minister Nitin Gadkari has said.

Representational image of old cars. (Photo: iStockphoto)

In a move aimed at giving further thrust to emission control measures, the Centre has almost finalised the draft norms for the ‘end of life’ policy, Union Road Transport Minister Nitin Gadkari said on Thursday.

Union Road Transport, Highways and Shipping Minister Nitin Jairam Gadkari. (Photo: Reuters)

The Voluntary Vehicle Modernisation or the ‘end of life’ policy will soon be available for stakeholders’ comment, suggestions and objections, if any.

Draft of the Voluntary Vehicle Fleet Modernisation policy is ready and we will be sending it for the Cabinet approval after nod from the Finance Ministry.

<b>Nitin Gadkari, Minister of Road Transport and Highway</b>

The new policy is likely to be valid for over-ten-year- old vehicles across the country.

Once the policy is through, he claimed it will result in about 40 percent increase in automobile production. And it will significantly bring down pollution, which is a major concern, he added.

Benefit of Giving Up Your Vehicle

The Highways Ministry had sought at least 50 per cent rebate on a new vehicle in excise duty from the Finance Ministry for buyers who surrender their old polluting vehicles for scrapping.

An incentive of Rs 30,000 for discarding small vehicles like cars, total benefits of Rs 1.5 lakh for big vehicles like trucks, after tax exemption, will be given in incentive to

Representational image of a truck. (Photo: iStockphoto)

We are bringing such a scheme that, for example, if you sell your old vehicle, you will get a certificate which on being produced at the time of new purchase will get you a discount of up to Rs 50,000. For small vehicles like cars, it will be up to Rs 30,000. Besides, there will be exemptions in taxes. Total benefits for big vehicles like trucks will be up to Rs 1.5 lakh.

<b>Nitin Gadkari, Minister of Road Transport and Highway</b>

The government earlier this year had announced that India will leapfrog to BS VI fuel specifications from 1 April 2020 – described as an “extremely challenging task” by auto industry – after Gadkari chaired a high-level meeting.

The plan is to set up 8-10 industrial units near ports like Kandla which will give certificates for accepting old vehicles and recycle vehicles from India and abroad.

(With agency inputs)