Vehicle Scrapping Policy Could Be More Attractive With Double Rebate Of 50 Per Cent On New Cars, Transport Ministry Proposes

In a bid to tackle the growing issue of pollution caused by older, high-emission vehicles, the Ministry of Road Transport and Highways (MoRTH) has proposed a significant increase in the rebate for new vehicle purchases under its Vehicle Scrapping Policy.

PTI reported that the draft notification, issued on 24 January, suggests a doubling of the rebate to 50 per cent on the one-time tax for new vehicles bought after scrapping those with BS-II and earlier emission standards.

Currently, a 25 per cent rebate is offered for personal vehicles, while commercial vehicles receive a 15 per cent discount.

However, the new proposal aims to extend this 50 per cent discount to both personal and commercial vehicles that are BS-I compliant or were manufactured before the introduction of the BS emission norms.

The Ministry’s initiative is part of its broader Voluntary Vehicle Modernisation Program, designed to phase out unfit, polluting vehicles and replace them with cleaner, more efficient models.

The programme aims to build a robust infrastructure, with a network of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs).

At present, over 60 RVSFs and 75 ATSs are operational across various states and Union Territories, with more expected to come online soon.

The proposed changes are expected to encourage the adoption of greener technologies and help reduce the environmental impact of outdated vehicles across the country.