Moving a step ahead in order to restrict vehicular pollution, commercial vehicular scrapping policy has received nod from PMO.
What is the policy all about ?
The govt. fixed 20 years as the lifetime for commercial vehicles (CV). Pre 2000 vehicles to be eligible for incentives if replaced. CV registered after the policy nod to have 20 year lifetime.
As per reports, the much-awaited vehicle scrap policy was given ‘in-principle’ approval at a high-level meeting at the PMO. 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 policy will be effective from 01 Apr’2020 and life of the commercial vehicle for scrapping has been fixed at 20 years, an official added.
Incentives for commercial vehicles scrapped –
1. Lower GST – As per reports the matter will go to the GST Council where it has been requested to reduce the GST rate to 18% from 28% for a new CV that would be purchased in place of a scrapped vehicle. The GST Council will decide the amount of concession that the Centre and the states will offer.
2. Reduction in cost of New Vehicle – The overall benefit of buying a new vehicle in place of scrapped vehicle would be about 15-20% of the new vehicle cost, as per sources.
3. Discount from Manufacturers – The 3rd incentive on the offer is expected to be discounts from automobile manufacturers.
The Steel Ministry will come out with recommendations for scrapping centres while the Environment and Forest Ministry will come out with rules and regulations, the official said.
The Ministry of Road Transport and Highways may come out with a notification in this regard within three months and based on that the states will be consulted.
The Road Transport and Highways Ministry is keen on implementing the Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy that aims at scrapping 20-year-old commercial vehicles in the first phase.
Minister Nitin Gadkari has recently said the policy was needed to curb vehicular pollution as well as given the annual 22% growth rate of automobile industry that will require an additional highway lane every third year, costing INR 80,000 crore.
~Sourced
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