BHUBANESWAR: Odisha government is set to announce a new policy that aims at incentivising old vehicle owners and investors for setting up Registered Vehicle Scrapping Facility (RSVF) in the State.
To be framed along the lines of the scrapping policy of the Ministry of Road Transport and Highways, the State policy will offer a number of incentives to encourage vehicle owners to scrap their old vehicles.
Sources said the State government is proposing to facilitate a 6 per cent discount on the ex-showroom price of the new vehicle to be purchased by the owner. The discount money will be compensated by the scrappage units.
Manufacturers will also be advised to provide a 5 per cent discount on the new vehicle on the production of scrapping certificates issued by the State government. Concession in the motor vehicle tax will be 25 per cent in the case of non-transport vehicles on one-time tax and 15 per cent in the case of transport vehicles for a period of eight years if the vehicle is registered against submission of ‘Certificate of Deposit’.
Similarly, voluntarily applied vehicles will be given a tax waiver up to 90 pc against their outstanding/arrear dues, if any, on a first come first serve basis.
Investors in scrapping facilities will get a net State GST reimbursement of 25 per cent for seven years while a capital investment subsidy of 10 per cent will be given for up to Rs 1 crore on infrastructure, equipment and machinery.
Odisha govt to incentivise old vehicle scrappage
The RVSFs will be treated as industrial units. IDCO will provide industrial land up to 10 acres depending on the size/ capacity of the RVSF to the investors as per the guidelines. Stamp duty subsidy will also be applicable as per the Industrial Policy Resolution (IPR).
A vehicle scrappage yard will also be entitled to an exemption up to 50 per cent on electricity duty for a period of five years. Principal Secretary of Commerce and Transport department Bishnupada Sethi said the policy under preparation will help in phasing out old vehicles from the roads and this will improve the environment and road safety in the State.
The policy is expected to be ready within a month as the government is planning to sign MoUs with firms for setting up of RVSFs during the Make-in-Odisha Conclave 2022, which is scheduled from November 30 to December 4.
As per the Centre’s policy, old vehicles will have to pass a fitness test before re-registration and commercial vehicles more than 15 years old and private vehicles, which are over 20 years old will be scrapped.