Trade old car for new, Govt. will pay upto 95K

3.7.2015: The new policy is aimed at encouraging people to discard their old cars and purchase the new ones, which also benefits the government in form of tax revenue.

The Centre is considering giving financial incentives to those willing to discard their old cars under a new policy, Transport Minister Nitin Gadkari said on Friday as he urged people to avoid using multiple cars and adopt ‘vehicle planning’ on the lines of ‘family planning.’

Mr. Gadkari, also the Minister for Roads and Highways, said the new policy was aimed at encouraging people to discard their old cars and purchase the new ones, which also benefits the government in form of tax revenue.

“We are formulating a new policy that whoever will surrender the old car we will give some incentive to them. We will process the old cars in any industrial area and recycle their parts. We will give some money to them. On one new vehicle purchase, the government is benefited by Rs.95,000. We will encourage people to sell off their old cars,” he said.

Speaking at a PHD Chamber event here, Mr. Gadkari said the road infrastructure was not able to match the growth of vehicles in the country, while discarding of old vehicles would also help de-congest the roads.

“Like family planning, vehicle planning is also important and it needs to be put into action. Vehicles are growing at a fast pace and the road infrastructure is not able to match it.

We need to work on tackling this situation,” the Minister added.