21 states/UTs offer incentives to boost scrapping of old vehicles

The Indian government, along with 21 states and union territories (UTs), has initiated various incentives to encourage the scrapping of old vehicles. These measures aim to address environmental concerns, reduce pollution levels, and promote the adoption of newer, more fuel-efficient vehicles. The incentives include discounts on road tax and registration fees for new vehicle purchases made after scrapping old ones, along with monetary incentives ranging from Rs. 25,000 (US$ 299.55) to Rs. 1.5 lakh (US$ 1,797.31) based on the type of vehicle and its condition.

Moreover, these initiatives also focus on boosting the automotive industry by creating demand for newer vehicles and facilitating the recycling of scrapped ones. The move aligns with global efforts to combat climate change and reduce carbon emissions by phasing out older, more polluting vehicles. By incentivizing the scrapping of old vehicles and promoting the adoption of newer, cleaner alternatives, the government and participating states aim to create a more sustainable transportation ecosystem in the country.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.