Fair price of vehicles to be scrapped will be decided by market forces, no govt intervention: Nitin Gadkari

New Delhi [India], : In a written reply to the Lok Sabha, Union Minister for Road Transport and Highways, Nitin Gadkari said that there will be no government intervention for determining the fair price for a vehicle to be scrapped. The market forces will determine the fair price of the vehicle to be scrapped.

“There is no intervention by the Government in determination of fair price of private vehicles to be scrapped. The price of these vehicles is decided by the market forces as per the condition of the vehicle to be scrapped” said Gadkari

The minister also noted that the Reserve Vehicle Scrapping Facility units, set up as private entities, are responsible for determining the price based on vehicle condition.

On compensating vehicle owners, the minister stated that while government vehicles have a reserve price determined by the Ministry of Steel, private vehicles’ scrap value is decided by the market forces.

To ease the economic burden on citizens, especially low-income groups, incentives are provided for scrapping vehicles. These include waiving registration fees for new vehicles purchased with a “Certificate of Deposit” issued upon scrapping.

Additionally, concessions in motor vehicle tax are offered up to 25 per cent for private vehicles and 15 per cent for commercial vehicles for buying a new vehicle.

He stated “Provided that this concession shall be available up to eight years, in case of transport vehicles, and up to fifteen years, in case of non-transport vehicles”.

On impounding end-of-life vehicles Gadkari said “the crackdown on end-of-life vehicles was resumed by Transport Department, GNCTD from 11.10.2024. Since then, 2,445 vehicles have been impounded by the enforcement teams of the Transport Department, GNCTD”.

This initiative targets vehicles that have exceeded their permissible age limits 10 years for diesel vehicles and 15 years for petrol vehicles in the national capital region .

The minister also stated that the government is taking steps to promote greener alternatives. The PM Electric Drive Revolution in Innovative Vehicle Enhancement scheme, with a budget of Rs10,900 crore, aims to accelerate the adoption of electric vehicles by providing incentives and setting up charging infrastructure.

Regarding pollution reduction, the scrappage policy includes guidelines for environmentally sound disposal of vehicle parts, ensuring compliance with Central Pollution Control Board standards.

The minister emphasized that the vehicle scrappage policy, coupled with incentives and regulatory measures, aims to create a sustainable ecosystem to phase out older, polluting vehicles while promoting cleaner, affordable transportation options.

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