The Indian Government wants individuals to scrap their old and polluting vehicles. Scrapping of old vehicles will reduce our dependence on import of steel and other metals extracted from old vehicles. Now an all-new incentive could push owners to scrap their old automobiles.
Voluntary Vehicle Fleet Modernisation Programme (V-VMP) by the Indian Government will offer an incentive. When an owner scraps his old vehicle and purchases a new four-wheeler, he would be able to avail incentives worth 8-12 percent.
It is estimated that over 28 million old vehicles can be scrapped in the country. The Indian Government explains that it is possible to generate Rs. 11,500 crore worth of raw material from scrap metal extracted from old vehicles every year.
Vehicles over ten years old follow BS-I emission norms and could be highly polluting. A vehicle modernization programme needs to be implemented to lower pollution levels. It is estimated that older vehicles are roughly ten to twelve times more polluting than modern vehicles.
The V-VMP will be applicable on vehicles manufactured prior to March 31, 2005. Ministry of Road Transport and Highways promise that all customers scrapping old models will receive incentives worth 8-12 percent on the purchase of a new vehicle.