Nitin Gadkari says market forces will determine scrap car prices without government intervention – Roadways News

In a written reply to the Lok Sabha, Union Minister of Road Transport and Highways Nitin Gadkari emphasized that the government will not intervene in determining the fair price of end-of-life vehicles, which will instead be determined by market forces based on the condition of the vehicle. The minister clarified that units of the Reserve Vehicle Scrapping Facility (RVSF), established as private entities, are responsible for evaluating and fixing the price for scrapping vehicles.

Incentives for vehicle owners and financial relief

Addressing concerns over compensation for vehicle owners, Gadkari noted that while government vehicles have a minimum price set by the Steel Ministry, the scrap value for private vehicles will remain the same. market-driven.

To ease the financial burden on citizens, especially low-income groups, the government provides various incentives for vehicle scrapping. One of the incentives is that a “Certificate of Deposit”, issued upon vehicle scrapping, allows vehicle owners to waive registration fees for new vehicles. In addition, owners can benefit from a discount on motor vehicle tax (up to 25% for private vehicles and 15% for commercial vehicles) when purchasing a new vehicle. These tax credits will be available for a maximum of eight years for transport vehicles and fifteen years for non-transport vehicles.

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Gadkari also highlighted the government’s renewed efforts to address the end of the crisis.to live vehicles (ELVs) in the National Capital Region (NCR). Since the Transport Department of the National Capital Territory of Delhi (GNCTD) government resumed its crackdown on car wrecks on October 11, 2024, a total of 2,445 vehicles have been seized. The initiative focuses on vehicles that exceed the permitted age limit (ten years). diesel vehicles and 15 years for petrol vehicles.

In accordance with India‘s sustainability goals, the government is promoting its adoption electric vehicles (EVs) through the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) program. With a budget of Rs 10,900 crore, the plan is intended to stimulate EV acceptance and support for the development of charging infrastructure across the country.

In addition, the vehicle scrapping policy contains guidelines to ensure environmentally responsible disposal of vehicle parts. This includes compliance with Central Pollution Control Board (CPCB) norms to minimize damage to the environment.