Good News For Consumers: Junk Old Vehicles, Receive 5 Percent Rebate From Automakers On New Purchases

Asserting there are four major components of the policy, the Union Minister said: “Apart from rebate, there are provisions of green taxes and other levies on old polluting vehicles. These will be required to undergo mandatory fitness and pollution tests in automated facilities. For this automated fitness centres would be required throughout in the country and we are working in that direction.”

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In what comes as good news for the consumers planning to junk their old vehicles and buy a new one under the Vehicle Scrapping Policy, Union Road, Transport and Highways Minister Nitin Gadkari has said the automakers will give about 5 percent rebate on the new purchases.

“Automobile manufacturers will provide about 5 percent rebate on new car purchases to the consumers in lieu of scrapping of the old,” PTI quoted Nitin Gadkari as saying.

Asserting there are four major components of the policy, the Union Minister said: “Apart from rebate, there are provisions of green taxes and other levies on old polluting vehicles. These will be required to undergo mandatory fitness and pollution tests in automated facilities. For this automated fitness centres would be required throughout in the country and we are working in that direction.”

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Nitin Gadkari said the automated fitness tests will be set up under public private partnership (PPP) mode while the government will assist private partners and state governments for scrapping centres.

“Driving such vehicles that fail to pass automated tests will attract huge penalties and also be impounded,” he added.

The Union Road, Transport and Highways Minister said this policy is going to be a boon for the automobile sector, making it one of the most profitable sectors which in turn would generate huge employment.

Nitin Gadkari said the automobile industry turnover, which is Rs 4.5 lakh crore at present, is likely to swell to Rs 10 lakh crore in the years to come with India becoming an automobile hub.

“The export component of this which at present is Rs 1.45 lakh crore will go up to Rs Rs 3 lakh crore,” he said, adding once the policy comes to practice availability of scrapped material like steel, plastic, rubber, aluminium etc. will be used in manufacturing of automobile parts which in turn will reduce their cost by 30 to 40 percent.

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Stating the policy will give a boost to new technologies with better mileage of vehicles besides promoting green fuel and electricity, Nitin Gadkari said this will cut on India’s huge Rs 8 lakh crore crude import bill which is likely to increase to about Rs 18 lakh crore.

“This policy will result in increase in vehicle demand which in turn would boost revenue. Also, ancillary industries would come up in large numbers thriving on junk vehicles,” he added.

The Union Minister further said about one crore polluting vehicles would go for scrapping initially.