Delhi Government to Offer Incentives for Scrapping Overage Vehicles

The Delhi government's transport department is planning to provide incentives to those scrapping overage vehicles and purchasing new ones. Discounts on motor vehicle tax ranging from 10 to 20 percent will be offered, with a cap on total concessions. This move aims to curb pollution in Delhi.

The Delhi government's transport department is set to introduce schemes offering incentives to those who scrap their overage vehicles and purchase new ones, according to sources on Friday.

The proposed incentives include a discount on motor vehicle tax ranging from 10 to 20 percent for customers who scrap their old vehicles and buy new ones. Notably, those scrapping petrol cars and bikes could receive a 20 percent discount, while diesel vehicle owners may be eligible for a 15 percent tax break. However, the total concessions cannot exceed 50 percent of the vehicle's scrap value.

After scrapping, owners will receive a certificate valid for three years, allowing them to buy a new vehicle and claim the discount. This initiative aims to encourage scrapping of old vehicles to reduce Delhi's pollution levels. The Supreme Court's 2018 ban on diesel and petrol vehicles older than 10 and 15 years remains in effect, enforcing stricter compliance measures.

The National Green Tribunal's 2014 order also prohibits parking vehicles older than 15 years in public places. The Delhi government has deregistered 5.5 million such vehicles. Owners can obtain a No Objection Certificate within a year to move the vehicle out of Delhi or opt for scrapping through the Voluntary Vehicle Scrapping Application.