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Transport ministry clears policy to scrap old commercial vehicles

Transport ministry clears policy to scrap old commercial vehicles
According to Gadkari, the policy will help in decreasing vehicular pollution by up to 65%.. Photo by Shah Junaid.
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The ministry of road transport and highways on Thursday gave in principle approval to the Voluntary Vehicle Fleet Modernisation Programme (V-VMP).

In a meeting with the committee of secretaries (CoS), the ministry cleared the proposal to scrap commercial vehicles that are older than 15 years. It proposes relief of about Rs.500,000 to people who purchase a new commercial vehicle of about Rs.15 lakh and surrender a heavy vehicle which is more than 15 years old.

“We have approved the concept note presented by CoS and it will now be sent to the Cabinet. The compensation will be decided by the Cabinet… the finance ministry asked us to go ahead with it. Secondly, they said if we want the states and central government on board, we would have to go through the GST (goods and services tax) Council,” Nitin Gadkari, Union minister for road transport and highways, told InfraCircle.

According to Gadkari, the policy will help in decreasing vehicular pollution by up to 65%.

Meanwhile, in a written reply to Rajya Sabha on Monday, minister of state for road transport and highways, Mansukh Lal Mandavia, said the concept note on V-VMP was circulated for inter-ministerial consultation.

Gadkari on 3 February had told reporters that the government was working on a policy to scrap vehicles older than 15 years. “If anyone is buying a car worth Rs.15 lakh, he will have to shell around Rs.10 lakh or so,” he had said. 

When asked, a ministry official on Thursday said the compensation is proposed for heavy vehicles only. “The minister meant it for heavier vehicles like trucks and buses only,” the official said.

 

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