New Cars and Bikes in India

Manufacturers Might Be Asked To Offer Incentives Under New Scrappage Policy: Report

Reportedly, the Union Cabinet is likely to approve the scrappage policy after the monsoon session of Parliament. However, the government will not offer any tax exemption, and any incentives, if at all offered, will have to come from OEMs.

Reportedly 15-year-old commercial vehicles & 20-year-old private vehicles can be scrapped expand View Photos
Reportedly 15-year-old commercial vehicles & 20-year-old private vehicles can be scrapped

Highlights

  • Reportedly, the new scrappage policy will offer no tax exemptions
  • Incentives for vehicle owners might have to come from manufacturers
  • The new scrappage policy is likely to be approved soon

A recent report suggests that the upcoming government scrappage policy for end of life vehicles will offer no tax exemptions to owners, and any incentives for vehicle buyers will have to come from automakers. According to Mint, a government official has told them that the Union Cabinet is likely to approve the scrappage policy after the monsoon session of Parliament is over. However, the official also added that "incentives, if any, will have to offered by OEMs (original equipment manufacturers)."

Reportedly, under the new scrappage policy, all commercial vehicles that are 15 years old, and all private vehicles that are 20 years old will be eligible for scrapping. However, the fitness certificate will also be mandatory for these vehicles to ply on the road, which the owners will need to obtain from automated testing centres. The government official has also said that if a vehicle fails the fitness test more than thrice, it might be subjected to mandatory scrapping, according to the proposed policy. All that said, given the fact the government is yet to finalise the norms for setting up of vehicle scrapping facilities, even if announced, the policy might not be implemented immediately.

Also Read: Announcement For Scrappage Policy To Be Made Soon: Union Minister Prakash Javadekar

ttldpls8

Under the proposed policy, if a vehicle fails fitness test 3 times, then it might be subjected to mandatory scrapping

The need for an effective scrappage policy has been in discussion for a few years now. Earlier this year, a bench headed by National Green Tribunal Chairperson Justice Adarsh Kumar Goel said a proper mechanism to set up authorised recycling centres compliant with environmental norms was an urgent need given a large number of ''End of Life Vehicles'' (ELV). The green panel had said the response of the MoRTH is very unsatisfactory and lacking insensitivity. The Society of Indian Automobile Manufacturers (SIAM), has been urging the government to formulate a scrappage policy to phase out older and polluting vehicles. The scrappage policy is part of the stimulus package requested by OEMs for the auto sector's revival, in addition to a reduction in the GST rates.

Newsbeep

Also Read: Scrappage Policy In Final Stage, To Get Cabinet Approval Soon: Nitin Gadkari

l7qcd8sc

Speaking at the SIAM convention, Union Minister Prakash Javadekar had said that the official announcement about the scrappage policy will be made soon

Also Read: Need An Effective Scrappage Policy To Help Auto Industry: Daimler India CEO

The Minister of State for roads, V.K. Singh, recently told the Rajya Sabha that the Government of India has drafted a cabinet note on creating an ecosystem for voluntary and environment-friendly phasing out of unfit and old polluting vehicles. Earlier, the Centre had asked States Governments to offer a rebate on road tax to vehicle owners, against the presentation of scrapping certificates. Plus, recently, speaking at the SIAM convention, Union Minister Prakash Javadekar also confirmed that the new scrappage policy will be announced soon. However, if these reports are true, and the government is not going to offer any incentives from its side, then this certainly changes things for both manufacturers as well as consumers.

0 Comments

Source: Mint

For the latest auto news and reviews, follow carandbike.com on Twitter, Facebook, and subscribe to our YouTube channel.

You might be interested in

New Car Models

Land Rover Defender

SUV, 14 Kmpl
Land Rover Defender
Price Starts
₹ 73.98 - 90.46 Lakh
EMI Starts
₹ 1,53,570 9% / 5 yrs

BMW 2 Series Gran Coupe

Sedan, 19 Kmpl
BMW 2 Series Gran Coupe
Price Starts
₹ 39.3 - 41.4 Lakh
EMI Starts
₹ 81,580 9% / 5 yrs

MG Gloster

SUV, 12.35 Kmpl
MG Gloster
Price Starts
₹ 28.98 - 35.38 Lakh
EMI Starts
₹ 60,158 9% / 5 yrs

Mercedes-Benz EQC

SUV, 471 Km/Full Charge
Mercedes-Benz EQC
Price Starts
₹ 1 Crore
EMI Starts
₹ 2,06,130 9% / 5 yrs

New Mahindra Thar 2020

SUV, 13 - 15.2 Kmpl
New Mahindra Thar 2020
Price Starts
₹ 9.8 - 13.75 Lakh
EMI Starts
₹ 20,343 9% / 5 yrs

Toyota Urban Cruiser

SUV, 17.03 - 18.76 Kmpl
Toyota Urban Cruiser
Price Starts
₹ 8.4 - 11.3 Lakh
EMI Starts
₹ 17,437 9% / 5 yrs

Kia Sonet

SUV, 18.2 - 24.1 Kmpl
Kia Sonet
Price Starts
₹ 6.71 - 11.99 Lakh
EMI Starts
₹ 13,929 9% / 5 yrs

Audi RS Q8

SUV, 8.2 Kmpl
Audi RS Q8
Price Starts
₹ 2.07 Crore
EMI Starts
₹ 4,29,698 9% / 5 yrs