Come this budget, auto companies are seeking a national incentive scheme for scrapping old vehicles to promote industry growth and to curb pollution. A large scale scrapping policy has been introduced by several countries globally that helped the countries to replace old vehicles with new age vehicles that have better emission standards. The European Union even used the scrapping policy to overcome the economic meltdown in 2008.
If such policy is introduced in India, it will help in controlling pollution in major cities, thus making them better places to live in. Recently, the capital city of Delhi got flak for the amount of pollution in its air resulting in the banning of diesel cars more than ten years old, banning of sale of cars fitted with an engine of more than 2-litre capacity and increased tax for entry of trucks into the city.
If reports are to be believed, the government is considering offering up to Rs.1.5 lac in incentives for scrapping your old vehicle. If you are giving your vehicle for scrapping, you will get up to Rs.50,000 discount when you buy a car and up to Rs.1.5 lac incentive for trucks.
The scrapping of old vehicles will certainly help in controlling pollution better as older vehicles tend to cause more emission with lesser fuel economy. With the introduction of the incentive scheme for scrapping old vehicles, the auto industry also gets a boost through sales of new vehicles that come with better emission standards and better fuel efficiency.
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