Surrendering your 10-year-old vehicle may give you incentives up to Rs 1.5 lakh

India’s Transport Minister Nitin Gadkari said soon the government will offer financial incentives of up to Rs 1.5 lakh to people who will surrender vehicles that are over 10 years old.


This move will not only check pollution but also ease traffic.


Gadkari informed a proposal in this regard is being formulated and the Finance Ministry's nod will be sought on it.


On the sidelines of a global conference on public transport innovation, Gadkari said that the government will introduce such a scheme that at the time of selling an old vehicle, the person will get a certificate, which on being produced at the time of new purchase will get you a discount of up to Rs 50,000.


“For small vehicles like cars it will be up to Rs 30,000. Besides, there will be exemptions in taxes and total benefits for big vehicles like trucks will be up to Rs 1.5 lakh," said Gadkari.


The plan also includes setting up of 8-10 industrial units near ports like Kandla, which will not only give certificates for accepting old vehicles but would recycle vehicles from India and abroad and thereby give a boost to employment and economy.


"We are going to recommend the scheme to the Finance Ministry... If incentives will be given, it will be easy for people to surrender their old vehicles and get new vehicles of international specifications...may be of Euro 6 standard," said Gadkari.


"Already National Green Tribunal has given a decision on pollution.... Manufactures now seeking time for four to five years. Manufacturers can as early as possible go to the mark of Euro 5 and 6 and I suggest if they could go for Euro 6," he said.


Gadkari also asked manufactures to build vehicles based on bio-fuel like bio-ethanol or diesel instead of only diesel version saying government will incentivise such vehicles.


Gadkari added efforts were on to make bio-CNG from sewage water.


During the convention, Gadkari also spoke about new Road Transport and Safety Bill.


"I want to urge all ministers from states here that we will not claim any revenue share from states while reforming the system. We need their cooperation to make the system corruption-free, transparent and timebound," he said.


The government will set up 2,000 centres across the country on public-private-partnership mode which will not only issue licences based on computerised systems of driving tests but also fitness and pollution certificates for vehicles.


Gadkari said the government was also committed to end "permit raj" and would ensure barrier free seamless movement of inter-state permit holders of goods vehicles while urging the stakeholders to cooperate in e-governance to make the system 'corruption-free'.


"Permit Raj which is causing great hardships to people should be abolished," he said.