Delhi government is bringing a new scheme to promote removal of old vehicles from the road. The government is planning to provide a subsidy on road tax of up to Rs 50,000 on new vehicles with better emission standards.
Transport department officials have prepared a draft policy on scrapping vehicles. Which is expected to be shared soon with the public to seek their suggestions. According to media reports, the Finance Department is currently reviewing the proposed policy. Because it involves the use of public money in the form of subsidies.
A senior government official highlighted the issue that many vehicles which have completed their life are still plying on the city roads. Due to which they are contributing to pollution. However, the Transport Department had earlier seized such vehicles for removal. But this effort was stopped due to the intervention of the Delhi High Court.
The Delhi government, following the court’s directions, has prepared a draft policy on vehicle removal, which is likely to have different relaxations for commercial and private vehicles.
Under the current rules, petrol vehicles older than 15 years and diesel vehicles older than 10 years are not allowed to ply in the National Capital Region.
According to the Statistical Handbook 2023, around 55 lakh vehicles were de-registered in Delhi in 2021-22 and 2022-23. But only 1.4 lakh were sent to the scrapyard. Instead, owners obtained NOC (No Objection Certificate) from the transport department to register 6.3 lakh vehicles outside NCR.
“This shows that people are still holding on to their old vehicles, which contributes to air quality issues, or park them in residential areas or parking,” an official said.
“The new policy is aimed at motivating people to phase out old, polluting vehicles and invest in new vehicles,” the official added.
On removing their vehicles, individuals will get a “Deposit Certificate” which will have to be submitted along with the registration papers when purchasing a new vehicle to avail road tax exemption.
According to officials, this certificate will be valid for a specific period, and the tax concession will be applicable only to the vehicle category that is being removed.
