Incentives for giving up old diesel vehicles

Incentives for giving up old diesel vehicles

If you own a 10-year-old diesel vehicle, there may soon be some good news for you to cheer about. The government is considering financial incentives of up to Rs 1.5 lakh on the surrender of over-ten-year-old vehicles to check pollution and address road safety concerns.

This comes at a time when the National Green Tribunal (NGT) has banned the plying of diesel vehicles that are more than ten years old in the National Capital Region. 

The Union Ministry of Road Transport and Highways is formulating a new policy for surrendering old vehicles and it would soon be sent for the Finance Ministry’s approval.

The scheme would be valid for over-ten-year-old vehicles across the country.

Under the proposed policy, owners would get an incentive of up to Rs 30,000 for discarding small vehicles like cars, while total benefits after taking into account tax exemptions etc could be up to Rs 1.5 lakh for big vehicles like trucks, Road Transport Minister Nitin Gadkari said while addressing global conference on public transport here on Thursday.

“We are bringing such a scheme that, for example, if you sell your old vehicle you will get a certificate which on being produced at the time of new purchase will get you a discount of up to Rs 50,000.

“For small vehicles like cars it will be up to Rs 30,000. Besides, there will be exemptions in taxes. Total benefits for big vehicles like trucks will be up to Rs 1.5 lakh,” Gadkari said. 

The government also plans to set up 8-10 industrial units near ports like Kandla which will give certificates for accepting old vehicles and also recycle vehicles from India and abroad, thus giving a boost to employment and economy, he added.

He also urged manufacturers to build Euro 6 compliant vehicles as early as possible, saying pollution is a big concern and the NGT has also passed its order.

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