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New scrappage policy to add Rs 14,000 cr to union, state govts' kitty

Business Standard:  August 30, 2016

New Delhi: The union and state governments will see an increase in revenues of Rs 14,000 crore once the new vehicle scrapping policy comes into effect. 

Union road transport minister Nitin Gadkari said his ministry made a presentation to the finance ministry three days ago on the scrappage policy. “We will bring an elaborate scrappage policy. In the first phase, fifteen year old commercial vehicles will be eligible for scrapping. These vehicles account for 65 per cent of the pollution,” Gadkari said at an Acma event today. 

He said the central government will gain Rs 4,000 crore while states will gain another Rs 10,000 crore. The industry's sales will grow by 22%, he said. 

Gadkari said that those buying new vehicles will get some concessions from the state and central governments. The manufacture will also give some benefits as their sales will go up, he said. “We are seeking fund from the environment ministry to offer interest subvention on new vehicle purchase,” he said. 

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