Union Land Transport Minister Nitin Gadkari said the decision to destroy old vehicles would reduce air pollution and improve the environment.
The Minister yesterday tabled in the Lok Sabha a briefing on the policy of destruction of vehicles. He said the move would increase the automobile sector’s annual sales revenue from Rs 4.5 lakh crore to Rs 10 lakh crore.
The budget for the financial year 2021-22 included an announcement regarding the removal of old vehicles from circulation. The policy statement was prepared by the Ministry of Land Transport. Accordingly, it has been decided to remove personal use vehicles from circulation if they are more than 20 years old and to remove them from circulation if they are government and public utility vehicles for more than 15 years.
The individual vehicle owner who destroys the old vehicle and shows proof of it will be given a 5 percent discount on the purchase price of the new vehicle. He said automobile companies should provide this to the customer who shows proof. This will increase vehicle sales. Fuel consumption will decrease. Environmental pollution will also decrease. He added that the journey will be safer as the vehicles are new.
Businesses involved in the destruction of vehicles will also receive formal corporate status. He said the materials available by destroying old vehicles would help in recycling. He said the Federal Ministry of Road Transport would soon issue a notification in this regard. According to the ministry, 51 lakh vehicles are more than 20 years old. 34 lakh in light vehicles over 15 years. The number of medium and heavy vehicles over 15 years is 17 lakh. He said the smoke emitted by these vehicles is 10 to 12 times more than the smoke emitted by conventional new vehicles.
It has been decided to increase the certification fee for commercial vehicles older than 15 years.