Centre has allotted ₹2,000 crore to State governments to scrap vehicles more than 15 years old: Gadkari

The Central government has provided an incentive of ₹2,000 crore to the State governments under the Special Assistance to States for Capital Investment 2022-23, as part of its vehicle scrapping policy said Union Minister of Road Transport and Highways, Nitin Gadkari. 

The Central government has provided an incentive of ₹2,000 crore to State governments under the Special Assistance to States for Capital Investment 2022-23, as part of its vehicle scrapping policy said Union Minister of Road Transport and Highways, Nitin Gadkari. 

Mr. Gadkari was, on Thursday, answering questions raised by Rajya Sabha MP Kanimozhi N.V.N. Somu, about steps taken by the Central government to impose a ban on government vehicles that are more than 15 years old and also funds to buy new vehicles to replace the old ones. 

Mr. Gadkari said the Ministry of Road Transport and Highways had issued a notification dated January 16 this year, which provides that the certificate of registration for vehicles owned by Central, States and Union Territorial governments and their departments, local government (municipal corporations or municipalities or panchayats), State Transport Undertakings, Public Sector Undertakings and other autonomous bodies with the Central government and State governments, shall not be renewed after a lapse of 15 years, from the date of initial registration of the vehicle.

However, this rule would not apply to special purpose vehicles (armoured and other specialised vehicles) used for operational purposes for defence of the country and for the maintenance of law and order and internal security. The Central government has increased the incentive amount to ₹3,000 crore in the financial year 2023-24 for incentivising States to scrap vehicles that are older than 15 years. 

Mr. Gadkari also said, as per the notification 11,025 vehicles have been scrapped till March 31 this year by Registered Vehicle Scrapping Facilities. A total of 2,56,935 vehicles that are older than 15 years have been identified by 24 State governments and Union Territories, he added.

Regarding the question raised by Dr. Kanimozhi about the subsidy scheme for electric vehicles, Mr. Gadkari explained that a total budgetary support of ₹10,000 crore has been allotted for Phase-II of the FAME-India Scheme (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) for a period of five years, which commenced from April 1, 2019. The main focus under this scheme was to support electrification of public and shared transportation, and it also aims to support, through demand incentives, the purchase of  7,090 electric buses, 5 lakh  electric three-wheelers, 55,000 electric cars and 10 lakh electric two-wheelers.