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Indian road ministry seeks rebate on scrapping old vehicles for new ones

The Ministry of Road Transport and Highways has approached Finance Ministry with a proposal for rebate in the form of excise duty reduction for consumers who purchase a new vehicle and give their old one for scrapping.

In a written reply to the Lok Sabha, minister of state for road transport and highways P Radhakrishnan said that the ministry was in the process of making a policy to incentivise people to bring their old vehicles for scrapping.

"A letter has been written to the Finance Ministry on January 20, to intimate if an incentive in the form of reduction in excise duty on the purchase of new vehicle can be given," he added.

In a separate query, Radhakrishnan said Bharat Stage-IV mass emission standards for two-, three- and four-wheeled vehicles across the country will come into force from April 1, 2017. "The government does not propose to advance the deadline of these emission norms," the minister added.

He also informed the House that the ministry is introducing Bharat Stage-VI fuel norms, after consultation with the Ministries of Petroleum and Natural Gas, Heavy Industries and Environment and Forest, all over the country from April 1, 2020.

A draft notification to amend the Central Motor Vehicles Rules, 1989 has been forwarded to the Government of India press on January 22, 2016 for the publication in the Gazette giving 30 day time to the public, Radhakishnan added.

This is being done for inviting suggestions and comments on the notification before finalising the said,” the minister informed.