Policy to check pollution by commercial vehicles above 10 yrs on anvil: Gadkari

Government will soon frame an integrated policy to check pollution by over 10-year-old commercial vehicles (CVs) but there's no immediate plan to ban trucks and busses above 15 years, Road Transport Minister Nitin Gadkari today said.

The policy will envisage scrapping of 10-year-old vehicles, which will be valued at 10-15% of the original cost.

It will also consider tax exemption by government and discounts by manufacturer so that owner of old vehicle gets an overall benefit of up to Rs 2.5 lakh on a new purchase.

Highlighting the need to frame a such a policy, Gadkari said: "Pollution is a big challenge for our country. Paris (Climate Conference) message is that we should pay attention to the environment."

When asked about banning CVs older than 15 years, he said: "An integrated policy to check pollution by over 10 year old commercial vehicle will be formed soon. Cabinet nod will be sought on it and only then it will come into force. There is no such decision at present to ban 15 years old commercial vehicles (CVs)."

Stating that "no policy can be in piecemeal without Cabinet approval", Gadkari said: "Whatever decision we will take, it will be based on integrated approach."

Elaborating how the government plans to tackle the issue, he said: "We will form such a policy that 10-year-old vehicles will be scrapped. The cost of vehicle will be valued at 10 to 15% of original cost. If vehicle cost is Rs 10 lakh, scrap will be 10% of it."

Speaking on the sidelines of a CII event, he further said government will recommend some tax exemption so that neither manufacturer nor government is at loss.

"Government will give tax exemption of Rs 50,000 to Rs 60,000. We are going to recommend it but have not declared the policy yet. Manufacturers will give Rs 50,000 to Rs 1 lakh discount to owner of old vehicle on new purchase, so that overall benefit will be up to Rs 2.5 lakh," Gadkari said.

The minister said such a step would result in 25% increase in automobile manufacturing.

"We will set up industrial hubs at ports to recycle such scrap that would be marketed and immensely boost the economy," he added.