NEW DELHI: In a move that would take lakhs of polluting commercial vehicles off road, the government may fix 20 years as the lifetime for commercial vehicles. The vehicle scrapping policy will come into force from 2020, a top government official said.
“Starting 2020, all pre 2000 registered commercial vehicles would be off road. And vehicles that are registered after the government approve this policy will have a lifetime of 20 years," the official added.
A high level meeting in the Prime Minister's office attended by the CEO of Niti Aayog along with secretaries of finance, transport, heavy industries, DIPP and MSME ministeries has given in principle approval to the vehicle scrapping policy.
The proposal is likely to be sent to cabinet soon for final approval. There are seven lakh commercial vehicles registered pre 2000 that are currently plying on roads. "There are certain incentives that are being worked out for people who will scrap their vehicles," the official added.
“Steel ministry will set up scrapping centers," the official added. Under the proposed policy, pre 2000 commercial vehicles will be eligible for incentives if replaced by new ones.
The policy proposes three incentives for the commercial vehicles scrapped — give reduction in GST at the time of purchase of the new vehicle, fair value for the scrap and discounts from automobile manufacturers. These incentives are likely to reduce the cost of a new vehicle for the buyer by 15% on an average.
"We'll now put a proposal in front of the GST council which will take call on reducing the tax rate on replaced vehicles," the official added. The road transport and highways ministry in 2016 had released the first draft of the proposed vehicle scrapping policy that said commercial vehicles older than 15 years should be taken off road. The committee of secretaries has decided that it should be made mandatory for 20 year old vehicles.
Under the plan, those opting for replacement of vehicles will have to deposit documents relating to the vehicle at the recycling centre. After verification, the owner will get a certificate and the price for the scrap. He has to provide the certificate to the dealer while buying the new vehicle to avail of the discount and tax incentive.