AP awaits Rs 1.50 billion central aid to scrap old vehicles

When presenting the Union Budget 2023-24 in the Lok Sabha in New Delhi, Union Finance Minister Nirmala Sitharaman stated that replacing obsolete polluting automobiles is a vital part of greening the country's economy. She promised states financial assistance for replacing obsolete automobiles. In this aspect, AP has great hopes for financial assistance from the centre.

Earlier, the union road transport and highways ministry had also come up with a national automobile scrappage policy, with the provision that states and UTs will be provided up to 25 per cent rebate on road tax for vehicles purchased after scrapping the old vehicles. There had also been a proposal to provide road tax concession of up to 25 per cent for personal and non-transport vehicles and up to 15 per cent for commercial and transport vehicles. The concession will be available for up to 15 years for non-transport and eight years for transport vehicles.

The AP transport authorities say that decommissioning outdated vehicles is entirely voluntary. They stated that they have yet to determine the number of old vehicles in the state that is suitable for scrapping based on their age from the date of their initial registration with the transport department.

However, the relocation will create jobs. Furthermore, if outdated automobiles are scrapped, the state would have less traffic pollution.

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