As part of scrappage policy, Odisha bans 18L old vehicles

Bhubaneswar: The state government on Wednesday decided to ban the plying of over 18 lakh unfit vehicles, mostly more than 15 years old, to check environmental pollution. There are 1.2 crore registered vehicles in the state. The government also offered incentives to encourage people to discard their old vehicles.
According to Odisha Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Policy, 2022, notified on Wednesday, a day after getting nod from the state cabinet, vehicle sellers will be advised to provide a 5% discount on a new vehicle if the customer produces certificate issued by government-approved vehicle scrapping units.
“Old vehicles will be discarded in phases after establishment of registered vehicle scrapping facilities (RVSFs). The scrapping units will issue certificates of deposit to people after receiving their old vehicles. The certificate can be shown to avail incentives and benefits on the purchase of a new vehicle,” a senior transport department official said.
As per the policy, the government will provide 25% concession in motor vehicle tax in case of non-transport vehicles and 15% concession in case of transport ones during registration of a new vehicle if the customer submits the certificate of deposit or scrapping. Besides, the fee for certificate of registration shall be waived for the new vehicles.
Value of the old vehicle will be approximately 6% of the ex-showroom price prevailing at the time of scrapping. In case the vehicle is not being manufactured any more, the scrapped value will be decided after negotiation between the vehicle owner and the scrapping centre operator, the policy said.
The policy also offers benefits to investors, who wish to set up RVSFs, which will be treated as industrial units. Government land will be allotted for establishment of the scrapping units. Concessional rates for land will be applicable as specified in Industrial Policy Resolution. No stamp duty will be required to be paid towards land. The RVSFs will be exempted from payment of premium for conversion of land for industrial purpose. At least 10% capital investment subsidy will be provided up to a maximum limit of Rs 1 crore.
The industrial unit shall be eligible for reimbursement of 25% of net state GST paid for 7 years. The RVSF will be exempted from payment of electricity duty for 5 years, the policy read.