The ministry of road transport and highways (MORTH) of India has proposed an incentive scheme to get old, inefficient vehicles off the roads. The scheme is aimed at reducing vehicular emissions, which is a major contributor to air pollution globally.
Under the proposed scheme, MORTH plans to meet up to Rs1.5 lakh on new vehicle purchases meant to replace old ones.
According to the framework of the scheme laid out by global consultancy firm McKinsey the incentive would be provided to vehicle owners who “surrender” old, polluting vehicles to recycling agencies.
The scheme could provide for retrofitting vehicles that are in working condition with lithium ion batteries and reselling them in the market or sale of the parts as automotive scrap for industrial use.
Indian Express reports citing sources that MSTC and JSW Group have already expressed interest in setting up vehicle recycling units.
Union Minister for Road Transport and Highways Nitin Gadkari said: “McKinsey is doing the research for us on a cash-for-clunkers scheme. We are looking at a proposal wherein if you sell your old vehicle you will get a certificate. When this is produced at the time of a new purchase, you will get a discount of Rs 30,000-50,000 on passengers vehicles.”
Add tax exemptions to the figure and the total benefits for big vehicles such as trucks will go up to Rs 1.5 lakh.
Under the plan, eight to ten industrial units for accepting old vehicles could be set up in places including Kandla. These units will be authorized to issue certificates stating that they have been responsibly recycled. The certificates would help holders receive the incentives on new vehicle purchases.
According to the plan, the first stage of the scheme would cover eight largest cities of India, and would help scrap 8.9 million passenger vehicles and 1.47 million commercial vehicles.
Ajith Kumar S