States to get incentives for scrapping old vehicles

27 Jan 2023 CW Team

The Union Finance Minister has included road transport under the scheme for providing special assistance to states for scrapping old vehicles.

State governments will be incentivised for scrapping government vehicles that are older than 15 years, waiver of liabilities on old vehicles, and tax concessions to individuals for scrapping old vehicles.

An amount of Rs 1.07 trillion has been allocated under the scheme and will be provided in the form of 50 year interest free loan for capital projects.

The amount provided to states is over and above the Normal Borrowing Ceiling(NBC). Financial assistance is provided through centre’s budgetary resources.

The amount will be disbursed in eight parts for various purposes like PM Gati Sakthi, PM Gram Sadak Yojana, incentive for digitalization, scrapping old vehicles, etc.

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