The auto industry which has recently started showing signs of recovery is likely to get its cheers doubled, as the transport ministry in its plan to phase out vehicles which are over 10 years old, is looking to provide incentives of up to Rs 1.50 lakh to those who surrender their old vehicles. Also, Transport Minister Nitin Gadkari will be taking proposal of excise duty waiver along with other sops including lower interest rate on auto loans, discount from manufacturers as well as the scrap value of the old vehicle with the finance ministry soon.
Transport minister said that if the proposal gets okayed, an owner of an old car would get incentive of up to Rs 30,000, which could go up to Rs 60,000 for heavy commercial vehicles such as trucks. The minister added that there would be other benefits of up to Rs 1.50 lakh but did not elaborate.
Gadkari also said the comprehensive scheme would include provisions of setting up of 8-10 auto shredding plants near ports such as Kandla, which would issue certificates for accepting old vehicles and would recycle vehicles from India and abroad. 'It will create huge employment as well.'
The auto industry have long been demanding for the same to push up sales, but now it has found the ministry’s support in the wake of the National Green Tribunal's order banning diesel vehicles over 10 years old in the National Capital Region.