Telangana Govt To Implement Scrapping Policy For Old Vehicles, Announces Incentives — Details

Though the government is tentatively planning a launch date of January 1, 2025, a potential delay is expected until April 2025 to allow the establishment of necessary infrastructure.

In a bid to enhance road safety and curb pollution, the Government of Telangana has announced plans to implement a Vehicle Scrapping Policy aimed at phasing out vehicles that are 15 years old or more and fail to meet fitness standards. The state has introduced incentives to promote the scrapping of old vehicles under the Voluntary Vehicle Fleet Modernisation Policy (VVMP).

While participation is voluntary for private vehicle owners, the policy mandates the scrapping of government-owned vehicles.

The policy, in line with recent amendments to the Motor Vehicle Act and inspired by similar initiatives in other states, will introduce incentives to encourage voluntary scrapping of outdated, high-polluting vehicles. This initiative falls under the broader framework of Vehicle Fleet Modernization, which seeks to promote cleaner and safer roads across Telangana.

As part of the policy, vehicle owners can avail themselves of two main incentives: Motor Vehicle Tax Concessions using which those who scrap their old vehicles and purchase new ones, upon submission of a Certificate of Deposit, will be eligible for tax reductions and waivers on penalties and taxes wherein vehicles voluntarily scrapped within two years of the policy notification will receive waivers on specific penalties and taxes.

Additionally, the government has announced a waiver on outstanding green taxes and penalties on overdue quarterly taxes for vehicles being scrapped.

For two-wheelers priced between Rs 1 lakh and Rs 5 lakh, tax concessions will range from Rs 1,000 to Rs 5,000. For four-wheelers priced from below Rs 5 lakh to above Rs 20 lakh, the concessions will vary from Rs 10,000 to Rs 50,000.

Though the government is tentatively planning a launch date of January 1, 2025, a potential delay is expected until April 2025 to allow the establishment of necessary infrastructure, such as Registered Vehicle Scrapping Facilities (RVSF) and Automated Testing Stations (ATS), as reported by Deccan Chronicle. To support this initiative, Rs 296 crore has been allocated for the establishment of 37 automated testing stations (ATS) across the state, with four of these stations planned for Hyderabad.