Surrender Old Vehicle; Earn Incentives Up To 1.5 Lakh

BANGALORE: In an effort to scrap out the vehicles which are older than 10 years, the road transport ministry has come up with an attractive offer. The government would offer incentives of up to 1.5 lakh on surrendering the old vehicles. The offer aims on driving out the older vehicles and introduce new ones to reduce pollution and traffic, reports Indian Express.

Apart from incentivizing consumers to discard old vehicles, the government also offers auto loans at lower interest rates and discount on new vehicles. The entire proposal would cost 5,000 crore.

“McKinsey is doing the research for us on a cash-for-clunkers scheme. We are looking at a proposal wherein if you sell your old vehicle you will get a certificate. When this is produced at the time of a new purchase, you will get a discount of up Rs 30,000-50,000 on passengers’ vehicles,” said Nitin Gadkari, Union Minister for Road, Transport & Highways.

This proposal came at a time when pollution in Indian cities has risen to alarming levels and this move would help reviving the situation. Although similar proposals had been offered in the past, the government has come forward this time to address the pollution issue in the country as a consequence of diesel cars that are more than ten years old being banned in the NCR region by the National Green Tribunal.

“The issue of pollution is serious and has to be addressed. What the minister wants is to provide incentives to vehicle owners to discard old, polluting vehicles and then retro-fit them with batteries. The consumer will get a certificate of a specified amount at the time of sale to the recycling agency. This can be traded for a discount at the time of purchasing  new vehicles. We are also considering a scheme through which buyers will receive some kickback in terms of fiscal incentives if he purchases retro-fitted electric vehicles from the market consequently,” said a senior government source.

The government would set up 8 shredding plants near ports where older vehicles from the both national and international market will be recycled. 

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