New Delhi: The Union Cabinet may soon come with a decision on the vehicle scrappage policy to lift the automobile sector which is passing through a rough phase.
The scrappage policy being prepared by Road Transport Ministry has got green signal from Finance Ministry and was recently send to PMO for further clearance. The PMO has given a go ahead to the Policy, sources told Zee Media.
The new Scrappage policy aims at discontinuation of 15 year old Petrol vehicles and 10 year old diesel vehicles from operating on the roads. It also recommends for increasing re - Registration fees by a several notch.
A vehicle, which has run for 15 years, is liable for re-registration. Souces added that after 15 years, the re-Registration of private four wheeler may go upto Rs 15,000 from the current Rs 600, commercial four vehicle may be charged Rs 20,000 from current Rs 1000, medium commercial four wheeler may be charged Rs 40,000 from the existing Rs 1500, heavy commercial vehicles having above than 12 tonnes load may be charged Rs 40,000 from the existing Rs 1500, sources told Zee Media.
The automobile sector believes that vehicle scrappage policy by the government will be able to arrest the gloomy auto sales and boost job growth in the sector.
It may be recalled that the Ministry of Road Transport & Highways had floated a concept note on ‘Vehicle Fleet Modernization Programme’ was May 26, 2016. This programme was aimed at ensuring phasing out of older polluting vehicles and enable their replacement with fuel efficient and environment friendly vehicles.