Scrap old car, get 5% discount on new

Scrap old car, get 5% discount on new

Dipak.Dash@timesgroup.com

New Delhi:12.03.2021 

The road transport ministry will issue an advisory to all vehicle manufacturers urging them to offer a 5% discount on the sale price of vehicles to buyers if they deposit a certificate of old scrapped vehicle during the purchase of a new one.

The set of notifications to operationalise the voluntary vehicle scrapping policy for private and commercial vehicles, and mandatory scrapping of 15 year-plus government vehicles are likely to be out in the next one week, sources said. TOI has learnt that the advisory to offer discount in sale price of vehicles will be part of the overall policy for roll out of the scrappage policy.

Last week, Union road transport minister Nitin Gadkari had outlined the idea. The voluntary vehicle scrapping policy announced in the Union budget will be applicable for personal vehicles, which are 20 or more years of age and 15 years in the case of commercial vehicles.

The government has also proposed a huge increase in the re-registration fee of 15 year-plus private vehicles and the fitness certificate fee for for 15 year-plus commercial vehicles. Meanwhile, sources said the first slot of vehicles, which will have to be scrapped will be those owned by the Centre and state governments and PSUs.

‘OLD IS GOLD’