Government to Bring More Benefits For Scrapping Old Car

Owners of old automobiles may get additional benefits to scrap them, as per report by Mint, two people familiar with the matter state that government reviewing the existing scrappage policy has found few takers so far. The road transport ministry is discussing additional benefits to encourage scrapping, and the prime minister’s office (PMO) will greenlight the final policy, the people cited above said on condition of anonymity. The policy may be in effect by the new government that takes office after the next general elections.

The government's 2021 regulations recommended scrapping commercial vehicles older than 15 years, and private vehicles over 20 years. The scrappage policy floated in 2021 had proposed incentives to be given by manufacturers and state governments. The government had estimated that scrapping would attract investments of around ₹10,000 crore and create 35,000 jobs. However, this policy failed, as owners chose to sell old vehicles in rural areas instead. The reason for the failure of this scheme is lack of incentives, states a government official to Mint, one of the two people cited above.