No direct sops for junking outdated vehicles, Auto Information, Automobilnews
NEW DELHI: The federal government is unlikely to supply any direct incentives for junking outdated autos however will empower states and automakers to supply sops in opposition to scrapping certificates.The transport ministry, which had circulated a Cupboard observe on the Voluntary Automobile Scrappage Coverage for inter-ministerial feedback, has obtained approval from all of the ministries involved, an official mentioned.
“The Central authorities is not going to supply any direct incentives within the coverage or any tax sops, as was being talked about earlier,” an official instructed ET. “State governments will probably be free to supply rebates on street tax in opposition to a scrapping certificates. Even unique tools producers can permit a reduction in opposition to a scrapping certificates in the event that they wish to enhance their gross sales.”
The ministry is altering the draft tips issued in October for organising authorised automobile scrapping centres.
“We’re making minor modifications based mostly on feedback obtained on the draft tips for scrapping centres and the scrapping coverage will observe quickly,” the official mentioned.The much-awaited coverage, which is anticipated to revive automotive gross sales, will deal with creating disincentives for older autos plying on roads.
Extra frequent air pollution checks, larger re-registration prices and stringent fines for not carrying required paperwork, amongst different measures, will probably be put in place to discourage the usage of autos greater than 15 years outdated.
The transport ministry issued a draft notification earlier this yr proposing that renewal of registration of petrol and diesel vehicles be elevated to Rs 15,000 from Rs 600 at current.
The Nationwide Inexperienced Tribunal famous in July that there will probably be over 21 million ‘finish of life autos’ by 2025. About 9 million autos, of which 75% are two-wheelers, will probably be due for scrapping by subsequent yr, it mentioned.
The primary goal of the coverage is to fight air air pollution attributable to outdated autos, some extent that’s lacking within the public discourse, a second authorities official mentioned.