Ashok Leyland Hippo Tractor

The draft policy for voluntary retirement for all four wheeler vehicles which were bought before April 2006. However, the policy underwent various changes in due course and now the policy has been given a go ahead by the Committee of Secretaries (CoS) to scrap only commercial vehicles such as trucks and buses which are older than 15 years.

The (CoS) has given an in principle approval to the roads transport and highways ministry’s proposal to provide a package of incentives to remove old and polluting trucks, buses and other commercial vehicles from the roads. The policy will be voluntary and applicable to commercial vehicles older than 15 years.┬áThe ministry’s proposal has been awaiting clearance for almost a year now.

The committee, which gave the green signal to the proposal, had secretaries from the ministry of finance, environment, steel, heavy industry, roads and law ministry as its members. The proposal will now has to be cleared by the Union Cabinet for implementation.

Tata 1210
Tata 1210


Under the proposed policy, commercial vehicles older than 15 years will be eligible for incentives if replaced by new ones.According to government estimates, the programme may help replace several million vehicles with less-polluting ones, thereby reducing vehicular emission. The policy proposes three incentives for the vehicles scrapped -half the road tax and excise duty at the time of purchase of the new vehicle, fair value for the scrap, and discounts from automobile manufacturers. These incentives are likely to cut cost of a new vehicle for the buyer by 15% on an average.

The proposal will also be put before the goods and services tax council as the scheme offers tax incentives. Under the plan, those opting to scrap their old commercial vehicles will have to deposit documents relating to the vehicle at the recycling centre. After verification, the owner will get a certificate and the price for the scrap. He has to provide the certificate to the dealer while buying the new vehicle to avail of the discount.

According to the ministry, the policy has the potential to reduce vehicular emission by 25% and save oil consumption by 3.2 billion litres a year. The ministry had last year released the first draft of the proposed policy.

With BSIV implementation from April 2017, the sales of CV is likely to get dampened for next couple of quarters. Quicker approval for policy can be a measure to streamline the sales and will be a relief to manufacturers as well.

By CV News

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