Price of scrapped vehicles will be decided by market, not government: Nitin Gadkari

Explaining the reason behind the government’s reluctance to decide the scrapping value of a vehicle, Gadkari said the price of scrapped vehicles will depend on a number of factors. For all state-owned vehicles, models have a reserve price determined by the Ministry of Steel. However, the minister stated that it will not be possible for the Center to predict the scrapping value of a private vehicle without knowing in what condition it has been sent to the scrapping facility. In his response, the minister stated: “The Government does not intervene in determining the fair price of private vehicles that are to be scrapped. “The price of these vehicles is decided by market forces based on the condition of the vehicle to be scrapped.”

Apart from government-run vehicle scrapping centres, the Center has also urged private entities to set up a Reserve Vehicle Scrapping Service (RVSF). The minister said these units will also be responsible for deciding the price of a scrapped vehicle after proper assessment of its current condition.

Vehicle scrapping policy: Incentives and tax benefits

To encourage owners of old vehicles, the Center also offers incentives and tax benefits. In Delhi NCR, owners of diesel cars older than 10 years and petrol cars older than 15 years are urged to scrap them and buy a new one. These vehicles are considered to have passed the age limits permitted to be roadworthy. Those wishing to continue with old vehicles will need to acquire a new fitness certificate.

The policy offers incentives and benefits to those who choose to scrap old vehicles. These include exemption from payment of registration fees for new vehicles purchased upon presentation of the Certificate of Deposit issued when scrapping the old vehicle. The policy also offers motor vehicle tax reductions to owners who decide to purchase a new vehicle. You can avail up to 25 percent tax benefit for private vehicles and 15 percent for commercial vehicles.

Old vehicles, especially those that have reached the end of their useful life, are some of the major reasons behind vehicular pollution in India. The Center has actively taken initiatives to dispose of these old and polluting vehicles. According to Gadkari, around 2,500 such units have been seized by authorities since the crackdown on old vehicles resumed in October this year.

Get information about Upcoming cars in India, Electric vehicles, Upcoming bikes in India and cutting-edge technology that transforms the automotive landscape.

First publication date: November 30, 2024, 11:07 am IST