Puducherry Budget | Policy to phase out old vehicles from roads

The policy will frame rules for the scrapping of vehicles that are over 15 years old in order to reduce pollution and fuel consumption; it will provide a subsidy on motor tax on the purchase of a new vehicle

The government has mooted a vehicle scrapping policy to phase out motor vehicles more than 15 years old from the roads, in the Union Territory.

The Budget for 2023-24 presented in the Assembly, stated that the policy would be framed on the basis of the Motor Vehicles (Registration and Functions of Vehicles Scrapping Facility Amendments) Rules, 2022 notified by the Ministry of Road Transport and Highways (MoRTH), Government of India.

The policy will be framed to scrap motor vehicles that are more than 15 years old, with the objectives of reducing pollutants and consumption of fuel, and for recycling of scrapped vehicle parts.

Measures such as a subsidy on motor tax payable on the purchase of new vehicle, licenses for Registered Vehicle Scrapping Facilities (RVSF) etc., will be incorporated into the policy to encourage people to scrap their old motor vehicles.

In order to replace its old fleet and to improve mobility in urban areas and inter-state routes, the Puducherry Road Transport Corporation has invited e-tenders to procure 50 electric and 50 Diesel Buses. These buses will be operated soon. In addition to this, new bus bodies for 10 existing buses will be constructed and put into operation.

Online Automatic Fare Collection Machines will be brought into use by the PRTC and a National Common Mobility Card will be introduced for the public for payment of ticket fares through these machines.

In order to reduce air pollution and promote greener vehicles, the Puducherry Electric Mobility Policy will be notified, and through this policy, subsidies for purchases of e-vehicles by the public will be provided to reduce the financial burden of the purchases with an approximate amount of ₹10 crore per year. This will be implemented for the next four financial years, 2023-24 to 2026-27.