Rumour: Lifetime for CVs to be fixed at 20 years

According to a media report, the lifetime of commercial vehicles (CV) could be fixed at 20 years. The new scrappage policy is likely to be sent for cabinet approval soon. Once it is cleared by the cabinet, it will be sent to the GST Council. It has been reported that the new policy could come into force from 2020. 

The government is also planning to introduce certain incentives for people who will scrap their vehicles. These include concessions on GST at the time of purchasing new vehicles, discounts from vehicle manufacturers and a certain value for the old vehicle. Combined, the incentives are likely to reduce the cost of the new vehicle by an average of 15%. Besides, CVs registered before the year 2000 could be made eligible for the incentives. Currently, there are 7,00,000 pre-2000 registered CV plying on Indian roads.

The steel ministry will be responsible for setting up recycling centres. Those opting for the scrappage scheme will have to deposit the vehicle documents at the recycling centre. Once verified, the owner will receive a certificate and the price for the scrap. The owner will have to present the certificate to the dealer while purchasing the new vehicle to avail of the incentives.

Source: Economic Times