Telangana govt offers incentives for scrapping old vehicles
Hyderabad: In an effort to improve road safety and reduce pollution, the Telangana government has rolled out the Vehicle Fleet Modernization Policy which promotes the voluntary scrapping of old, polluting vehicles.
The government is offering incentives for those who scrap their old vehicles and buy new ones. As per the policy, vehicles older than 15 years and fail to pass fitness tests will turn into scrap material. These vehicles will not be allowed to be registered or driven on the roads if they fail to clear the fitness tests. However, these vehicles will be allowed to be driven for another 3-5 years if they pass the fitness test, however, the owners have to pay the green tax.
Transport vehicles older than 8 years and non-transport vehicles such as two wheelers older than 15 years will qualify for the motor vehicle tax concessions.
In order to avail these benefits, owners of vehicles must apply for scrapping at a Registered Vehicle Scrapping Facility (RVSF). Vehicle owners can receive two types of incentives:
A motor vehicle tax concession when they scrap their old vehicle and buy a new one, provided they submit a Certificate of Deposit.
Waivers on certain penalties and taxes for vehicles voluntarily scrapped within two years of the policy notification.
The state government will implement this policy from January 1, 2025. Currently, Hyderabad city has 17 lakh motorcycles, 3.5 lakh cars, 1 lakh goods vehicles and 20,000 auto-rickshaws that may go off the roads in 2025.
