The road transport and highways ministry has released the concept paper for its proposed voluntary vehicle fleet modernisation policy that aims to take off the old polluting vehicles (vehicles older than 11 years) off road.
The policy aims at incentivising people to retire their old vehicles that were bought before March 2005 or are below BS IV standards. As per the government estimates, the scheme may take 28 million such units off the road and reduce emission.
The concept note proposes cut in excise tax up to 50 per cent at the time of purchase of new car after scrapping old car, fair value for the scrap and discounts by automobile manufacturers. All these incentives is likely to reduce the cost of a new vehicle for a buyer by 12 per cent. It suggests complete excise exemption for state transport buses to encourage public transport and help decongest roads. “The decision of excise exemption is to be taken by finance ministry. We’ll try convincing them,” a senior government official said.
“Voluntary Vehicle Fleet Modernisation (V-VMP) has the potential to reduce the vehicular emission by 25-30 per cent and saving oil consumption by 3.2 billion liters per year. The reducing in oil consumption by new vehicles will help save nearly Rs 7,000 crore in oil import,” said the concept note on V-VMP floated by the ministry on Thursday.
The ministry has invited suggestion and objection of stakeholders within a fortnight.
According to the concept note, those opting for V-VMP will have to deposit documents relating to the vehicle at the recycling centre. After verification of documents, the owner will get a V-VMP certificate and will get the price for the scrap. Then he has to provide the certificate to the dealer while buying the new vehicle to avail discount. Mats Zuccarello Womens JerseyShare This