The government is working on a proposal to offer financial incentives of up to Rs 30,000 for surrender of diesel cars that are more than 10 years old and Rs 1.5 lakh for old trucks in order to check pollution and address road safety concerns.
The government has drawn up the proposal in the wake of the National Green Tribunal (NGT) order banning plying of diesel vehicles which are more than 10 years old in the National Capital Region (NCR). "A proposal to formulate the new incentive policy for surrendering old vehicles is being worked out and would be soon sent for the finance ministry's approval," Union minister for road transport and highways Nitin Gadkari said on the sidelines of a global conference on public transport innovation on Thursday.
"Under the proposed policy, people would get an incentive of up to Rs 30,000 for discarding small vehicles like cars while total benefits after taking into account tax exemptions, etc, could be up to Rs 1.5 lakh for big vehicles like trucks," the minister said. "We are bringing such a scheme that, for example, if you sell your old vehicle, you will get a certificate which on being produced at the time of new purchase will get you a discount of up to Rs 50,000. For small vehicles like cars, it will be up to Rs 30,000. Besides, there will be exemptions in taxes. Total benefits for big vehicles like trucks will be up to Rs 1.5 lakh," he said.
Gadkari said that the plan is to set up 8-10 industrial units near ports like Kandla which will give certificates for accepting old vehicles and also recycle vehicles from India and abroad thus giving a boost to employment and economy. "It is a very beneficial industry and would create huge employment," Gadkari said.
The minister said there is an urgent need to recycle old vehicles as they are running on roads with old technology, which is lacking not only in terms of safety features but also creating pollution. "We are going to recommend the scheme to the finance ministry. If incentives will be given, it will be easy for people to surrender their old vehicles and get new vehicles of international specifications ... may be of Euro 6 standard," he said. Gadkari added that manufacturers must build Euro 6-compliant vehicles as early as possible since pollution is a big concern and the NGT has also passed its order.
The NGT on Wednesday had refused to modify its order banning the plying of diesel vehicles which are more than 10 years old in Delhi and NCR. Additional solicitor general Pinky Anand, appearing for the Union ministry of road transport and highways, had told the Bench that various truck operators are planning to agitate against the governments of Delhi, Haryana and Uttar Pradesh for their refusal to issue fitness certificates to diesel vehicles that are more than 10 years old.
The government had sought a modification of the ban order on the ground that such a strike would affect essential supplies for the public.