After 'green tax' approval, govt may put vehicle scrap policy on hold

After Union Highways Minister Nitin Gadkari announced a “green tax” on older vehicles, the Union government intends to announce more such policy initiatives as opposed to a full-fledged vehicle scrapping policy as envisaged earlier.

“The announcement of green tax is a step towards the scrappage policy,” an official told Business Standard.

The Ministry of Road Transport and Highways is of the view that the ecosystem is not in place for bringing in a proper policy at the moment.

“We don’t have scrappage units, neither do we have the ecosystem to dispose of older vehicles in an environment friendly manner,” another official said.

He added