The central government is looking at lowering the age for scrapping old trucks and buses to 10 years from 15 years.
A paper prepared by the road transport and highways ministry proposes scrapping commercial vehicles older than 10 years. The government could provide some incentive to owners to encourage them to surrender old vehicles.
“If this takes shape, it is indicative that many of our suggestions have been taken into account,” said R Ramakrishnan, senior vice-president for product strategy, commercial vehicles, Tata Motors.
If the 10-year rule comes into effect, it will lead to scrapping all commercial vehicles running on Bharat Stage (BS) I and BS II and even early BS III. This will lead to less emission and improved fuel consumption.
Vijay Chhibber, secretary in the ministry of road transport and highways, had told Reuters in December “it will be end of life” for commercial vehicles over 15 years old. There are 2.7 million vehicles in that category.
“Compared to a 10-year-old vehicle, today’s trucks are more fuel-efficient and less polluting. New vehicles will cause a spurt in sales, so even if the government cuts the excise duty and state governments lower the sales tax they stand to gain,” Ramakrishnan added.
Between April and February 2015-16, commercial vehicle sales grew 10 per cent, according to the Society of Indian Automobile Manufacturers. Medium and heavy commercial vehicle sales grew 31 per cent during the period as buyers rushed to replace their ageing fleets.
BS IV will come into force through the country on April 1, 2017. This is expected to force many buyers to advance their purchases to avoid a rise in prices.
New draft proposes reduction in age of scrapping of vehicles to 10 years from 15 years
Benefit to truck owners may come in the form of excise duty cut or rebate
New trucks will be more fuel-efficient and less polluting
- Over 3 mn estimated commercial vehicles are expected to be benefited