UP Cabinet approves old vehicle scrapping policy; govt to provide rebate on road tax

Lucknow (Uttar Pradesh) [India], March 11 (ANI): In a bid to curb pollution, the Uttar Pradesh Cabinet has approved old vehicle scrapping policy for the state, State Transport Minister Dayashankar Singh told media persons on Friday.

He said that for scrapping 15 years old vehicles the state government would provide a 50 per cent rebate in taxes and penalties and 75 per cent in the case of 20 years old vehicles. “Today the new scrap policy has been approved. A rebate of 50 per cent in taxes and penalties will be given for scrapping vehicles older than 15 years and 75 per cent waiver for vehicles older than 20 years will be given,” the State minister said, adding that the new scrapping policy will help in controlling pollution.

As per the minister, the Centre will provide Rs 300 crore for this as assistance.
In this regard, earlier in February, the Ministry of Road Transport of the Central government issued a draft notification in which all 15-year-old vehicles of the Central and State Governments will have to be scrapped. The new rule will also be mandatory for the buses and other vehicles of the Corporations and Transport Department.

According to the Ministry of Road Transport’s intention, the state government is encouraging private vehicles older than 15 years, as well as old vehicles used in departments, to be scrapped. Milestones have been fixed for this.

A letter regarding the scrapping of government and semi-government vehicles of 15 years or more in the Registered Vehicle Scrapping Facility (RVSF) was issued on January 23 with a google sheet containing information about vehicles. A notification dated November 28, 2022, was also issued for the relaxation of 15 per cent in road tax for private vehicles and 10 pc of total tax on the eight years for commercial vehicles, an official statement said.

“One-time waiver of pending liability on old vehicles is under process. All Heads of offices are requested to fill in the information about 15 years old vehicles of their department by Feb 5, 2023, so that further action can be completed,” it added.

Meanwhile, the Centre had also earmarked an amount of Rs 2000 crore for the promotion of this part. This assistance or incentive will be on a “first come first served” basis and the states will have to achieve certain milestones.

“The State has to achieve Milestone-1 and Milestone-2 to become eligible for the incentive grant under this scheme. After achieving each milestone, the Ministry of Road Transport and Highways will pay Rs 300 crore to the state government,” the statement said further.

Under Milestone 1, it will be mandatory to issue government orders to scrap all government-owned vehicles older than 15 years in RVSF. This order should be issued by the competent department of the State Government clearly mentioning the required number of vehicles in all departments, local bodies, undertakings etc which will be scrapped and the time by which they will be disposed of through RVSF.
Apart from that, it will be ensured to provide motor vehicle tax concessions on vehicles and to grant a one-time waiver of pending dues on old vehicles cancelled in RVSF for at least one year.

Under Milestone 2, all government vehicles older than 15 years will be scrapped as per the selected criteria. Under this, the total number of vehicles scrapped should be at least equal to the number of vehicles specified in the government order issued by the state government. All vehicles should be scrapped at RVSF only.