The Indian government is considering giving an upfront cash incentive to those offering their commercial vehicles under the proposed mandatory scrapping of vehicles, to generate steel scrap for the secondary steel sector, a senior government official said on Monday, April 30.
The government said that the Ministry of Steel is looking to offer a 15 percent higher cash incentive than the market rate for any commercial passenger vehicle more than 20 years old that will have to be mandatorily scrapped under a new policy to be unveiled within the next few months.
The additional incentive to owners of old vehicles will be borne as a "subsidy" by the steel ministry, the official added.