India will scrap 900,000 vehicles owned by the central and state governments starting from April 1, an official at the ministry of transport said on Tuesday, February 28.
The official said that assessment has been completed which shows that 900,000 vehicles owned by central and state governments have reached their ‘end-of-life’ cycle and will have to be mandatorily scrapped under the new law.
He said that under the scrappage policy state governments are to offer 25 percent tax rebates for purchase of a vehicle against the scrapping of an old vehicle. However, it is not year clear whether the state governments will receive any fiscal help from the central government to purchase new vehicles against the ones that are scrapped from April 1 onwards.
Meanwhile, the central government has directed Regional Transport Offices (RTOs), the vehicle registration authority at the state level, to explore opportunities to enter into collaboration and set up vehicle scrapping facilities by offering suitable land to prospective joint venture partners.
