Union Minister of Road Transport & Highways Nitin Gadkari said several commercial and passenger vehicle manufacturers will offer discounts for buying new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit.
Taking to social media platform X, the minister said, “I am pleased to report that, in response to my recommendation, several commercial and passenger vehicle manufacturers have agreed to offer discounts for the purchase of new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit. This initiative will significantly advance our Circular Economy efforts, ensuring that cleaner, safer, and more efficient vehicles are on our roads.”
Mr Gadkari chaired a productive session of the Society of Indian Automobile Manufacturers (SIAM) CEO’s delegation meeting at Bharat Mandapam, New Delhi.
“Congratulations and gratitude to the automobile manufacturers who have taken the initiative to participate in our Vehicle Fleet Modernization Programme. I trust that others will soon follow their lead and join us in this important endeavor,” he added.
Under the Vehicle Scrappage Policy, customers buying a new personal vehicle after scrapping old ones can avail of a concession in vehicle price or road tax of up to 25 per cent. For commercial vehicles, the concession is 15 per cent.
The scrappage policy is part of the government’s broader efforts to phase out old and unfit vehicles, reduce air pollution and boost the automobile sector.
As per the rules for 2024, the life of a motorcycle will be seven years or covering a distance of 1,20,000 km, whichever is earlier.
For light commercial vehicles (LCVs), it is six and half years or 1,50,000 km of running while for Heavy Commercial Vehicles(HCVs), the duration would be 10 years or 4, 00,000 km of running.
For all other vehicles, the maximum life is 15 years after which they will be scrapped. Vehicles that have been condemned will be scrapped too once they are 15 years old.