21 states/UTs offer incentives to encourage scrapping of old vehicles

With the central government mandating states to promote the scrapping of old and unfit vehicles, 21 states and Union Territories (UTs) have announced various concessions to incentivize the purchase of new vehicles in exchange for scrapping old ones. These concessions include reductions in motor vehicle or road tax of up to 25% for private vehicles and up to 15% for commercial vehicles.

Around 70,000 old vehicles have been voluntarily scrapped so far, although many of them are owned by central or state government agencies. Delhi stands out as the only state/UT where diesel and petrol vehicles over 10 and 15 years, respectively, are automatically deregistered and must be scrapped.

Details reveal that 17 states/UTs offer a 15% road tax concession for registering commercial or transport vehicles after scrapping old ones. For private vehicles, 12 states provide a 25% rebate on road tax. Additionally, states like Haryana, Uttarakhand, Karnataka, and Puducherry offer specific concessions or fixed rebates based on factors such as scrap value or vehicle price.

The road transport ministry has operationalized 37 registered vehicle scrapping centers (RVSFs) and 52 automated testing stations (ATS) across several states/UTs to facilitate the scrapping process and ensure vehicle fitness checks. Efforts are being made to increase the accessibility of these facilities to the public.