The proposed vehicle scrappage policy mooted by the road ministry on Wednesday received in-principle support from the finance ministry. The policy aims at checking pollution by scrapping 15-year-old vehicles from road.
After meeting finance minister Arun Jaitley on Wednesday, road transport minister Nitin Gadkari said that the finance ministry had suggested putting the proposed policy before a committee of secretaries.
“The finance minister has asked us to finalise the policy. A committee of secretaries will discuss the policy. Instead of asking for tax exemption, he said he would provide incentive in the Budget,” Gadkari said.
The matter will also be discussed with Prime Minister Narendra Modi, states, car manufacturers and the GST council, Gadkari said, adding that in the first phase trucks and buses would be targeted for scrapping followed by small vehicles.
The policy seeks to provide various incentives to the buyers intending to avail the scheme. Taking a part of the scrap value of the old vehicle and manufacturers’ special discount into consideration with the excise duty benefit (up to 50%), a buyer availing the scheme will get around 8-12% benefits of the total cost of the new vehicle as per the road ministry’s concept note circulated earlier.