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 that will provide at least 50 per cent rebate in excise duty on new vehicles for buyers who surrender their polluting old ones.
The Voluntary Vehicle Modernisation or the 'end of life' policy will soon be available for stakeholders' comment, suggestions and objections, if any, Union Road Transport Minister Nitin Gadkari said today.
"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," Gadkari said.
Once the policy is through, it will result in about 40 per cent increase in automobile production, he said and added that it will significantly bring down pollution, which is a major concern.
The Highways Ministry had sought from the Finance Ministry at least 50 per cent rebate in excise duty on purchase of new vehicles by buyers who surrender their old polluting vehicles for scrapping.
On scrapping of old polluting vehicles, the Minister has already said that the government is considering giving financial incentives of up to Rs 1.5 lakh on surrender of over-ten-year-old vehicles to check pollution and address road safety concerns.
The proposed policy will follow government announcement to implement stricter emission norms for vehicles from April 2020 despite the auto industry calling it an "extremely challenging" task to move up to BS-VI fuel specifications, skipping BS-V norms altogether.
The government earlier this year had announced that India will leapfrog to BS VI fuel specifications from April 1, 2020 after Gadkari chaired a high-level meeting here.
Gadkari has said earlier that under the proposed policy, people would get an incentive of up to Rs 30,000 for discarding small vehicles like cars, while total benefits after taking into account tax exemptions could be up to Rs 1.5 lakh for big vehicles like trucks, the minister has said.
The new policy is likely to be valid for over-ten-year- old vehicles across the country.
"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," Gadkari had said recently.
"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," he had said.
The plan is to set up 8-10 industrial units near ports like Kandla which will give certificates for accepting old vehicles and also recycle vehicles from India and abroad, thus giving a boost to employment and economy.
