Vehicle scrappage policy to be placed before Cabinet

India would soon have its vehicle scrappage policy as the Union road transport ministry has prepared the final draft of the much-awaited policy.

The policy is likely to be sent to the next Union Cabinet meeting for further approval. The policy which aimed at reducing the pollution levels by removing 15 years old vehicles from the road, is being considered a mega booster for the auto sector as it can help to generate great demand for new vehicles.

Sources close to the development said the government's scrappage policy is based on one single formula – de-incentivising the use of vehicle of 15 years old or above.

Sources say that the draft scrappage policy has proposed multiple times increase in the re-registration fees of over 15-year-old vehicles.

After 15 years of registration, a vehicle has to renew the registration or re-register the vehicle.

The re-registration of private four-wheelers over 15 years old can go up to Rs 15,000 from the current Rs 600.

Similarly, commercial four-wheeled vehicle re-registration fees can go up to Rs 20,000 from the current Rs 1,000.

The medium commercial four-wheeled vehicle re-registration can go up to Rs 40,000 from the existing Rs 1.500.

The re-registration fees of heavy commercial vehicles with above than 12-tonne load is proposed to be raised up to Rs 40,000 from the existing Rs 1,500.

Zee Media Newsroom