The Government of India is working intensely to implement fleet modernization program. The idea is to make scrapping your old car in favor of a new and more environment-friendly car attractive.
ET reports that the government has appointed consultancy firm AT Kearney to submit an action plan to retire old (read polluting) vehicles. The consultancy firm is believed to be wrapping up reports based on its findings after interacting with various stakeholders.
The final scrappage policy is expected to be ready in the next six months. It could offer tax rebates (may be in the form of excise duty benefits) for people who possess a certificate of disposing their old cars at authorized scrap yards.
One of ET’s top sources says that government has been demanding automakers to pitch in with their own effort to promote fleet modernization. OEMs are reportedly planning to offer discounts on new cars over and above the governmental incentives to holders of the aforementioned certificate. The objective is to promote scrappage of old cars on a large scale so that would lead to increased sales of new cars.
From the government’s point of view, encouraging people to dispose of their old cars in favour of new cars would be the best way to reduce vehicular pollution.