Scrap old car, get 5% discount on new

NEW DELHI: The road transport ministry will issue an advisory to all vehicle manufacturers urging them to offer a 5% discount on the sale price of vehicles to buyers, if they deposit a certificate of old scrapped vehicle during the purchase of a new one.
The set of notifications to operationalise the voluntary vehicle scrapping policy for private and commercial vehicles, and mandatory scrapping of 15 year-plus government vehicles are likely to be out in the next one week, sources said.
TOI has learnt that the advisory to offer discount in sale price of vehicles will be part of the overall policy for roll out of the scrappage policy.
Last week, Union road transport minister Nitin Gadkari had outlined the idea. The voluntary vehicle scrapping policy announced in the Union budget will be applicable for personal vehicles which are 20 or more years of age and 15 years in the case of commercial vehicles. All these vehicles will have to get valid fitness certificate for plying on roads.
While unfit vehicles will have to be scrapped, the government has also proposed a huge increase in the re-registration fee of 15 year-plus private vehicles and the fee to obtain fitness certificate after automated test would be very high for 15 year-plus commercial vehicles. There are also proposals for levying green taxes and other levies on old polluting vehicles.
Meanwhile, sources said the first slot of vehicles which will have to be compulsorily scrapped will be vehicles owned by the central and state government and the PSUs. They added the motor vehicle law empowers the Centre to decide the life of a vehicle and specify the age beyond which the registration cannot be renewed. Hence, the Centre would notify the rule barring registration of all vehicles owned by the governments and PSUs which have have attained 15 years of age.