The scrapage policy may put pressure on autocos to provide incentives

India’s upcoming vehicle scrapage policy will not offer any tariff waivers and no incentives should be provided by automakers, a government official said.

State Minister for Roads VK Singh told the Rajya Sabha on Saturday that the cabinet had prepared a note on creating an ecosystem for the voluntary and eco-friendly stage from unqualified and old polluting vehicles.

The Union Cabinet may approve the scrapage policy after the end of the monsoon session of Parliament, the official said.

The official, speaking on condition of anonymity, said “incentives should be given by EMEs (original equipment manufacturers).” Certificate.

15-year-old commercial vehicles and 20-year-old private vehicles may be considered for scraping by their owners, the official said.

Obtaining a fitness certificate will also be important. “Fitness certificates from automated testing centers must be obtained, without which vehicles will not be allowed to operate. If a vehicle fails the fitness test more than three times, it may be subject to mandatory scraping as per the proposed policy, ”the official said.

Measures to formulate policy on vehicle scrapage have made little progress in the last four years due to revenue loss concerns.

In August last year, Union Finance Minister Nirmala Sitharaman said there was a scrap policy for automobiles in the midst of a widespread recession in the economy.

Since then, there have been several meetings between the Prime Minister’s Office, the Ministry of Finance, the Ministry of Transport and the NITI Commission.

The policy is in the final stages of approval and will be implemented within a month, Transport Minister Nitin Gadkari said earlier this month.

However, the policy will not be implemented immediately and can only provide a broader framework because the government has not been able to finalize the criteria for establishing vehicle scrapping facilities. In October last year, the Ministry of Roads issued draft guidelines for setting up vehicle scraping centers.

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