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Scrapping 15-yr-old vehicles: Plan is to exempt cars, phase out buses, trucks, The Indian Express

Scrapping 15-yr-old vehicles: Plan is to exempt cars, phase out buses, trucks

The Ministry of Road Transport plans to retire only medium and mighty commercial vehicles (MHCVs) — and not passenger cars — that are more than fifteen years old under a proposed vehicle scrapping policy submitted to a Committee of Secretaries for approval.

“In respect of LMVs (light motor vehicles), it is estimated that about forty lakh cars are plying on the road that are more than fifteen years old. These vehicles are estimated to contribute about three per cent of vehicular pollution. Since the overall contribution of cars to emissions is significantly less, hence they are not being considered under this programme,” says the Ministry.

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According to the Motor Vehicles Act, a light motor vehicle or LMV is defined as a transport vehicle with an unladen weight that does not exceed 7,500 kg, a definition that covers the entire range of passenger cars and SUVs (sports utility vehicles) and MUVs (multi utility vehicles) that are presently available. This includes the Toyota Innova (weight of one thousand eight hundred seventy kg for the stronger auto version), Mitsubishi Pajero (1,935 kg), Ford Endeavour (Two,357 kg) and Mercedes Benz GL Class (Two,535 kg). All vehicles weighing more than 7.Five tonnes are MHCVs.

The ministry cites a probe by AT Kearney which shows that there are 11.Two lakh MHCVs which are more than fifteen years old and contribute to thirty four per cent of the pollution. In all, MHCVs accounted for Two.Five percent of country’s total fleet but contributed over sixty per cent of the air pollution, it says. Vehicle emissions contribute to rise in levels of toxic carbon monoxide, hydrocarbons, nitrogen oxides and particulate matter. Since it would be very difficult to impose a mandatory retirement of vehicles, the ministry argues, it plans to provide some respite and encourage retirement in this segment by proposing a voluntary vehicle modernization programme followed by a regulation on the life of vehicles.

For the very first two years, vehicle owners would be given incentives in the form of scrap value, direct transfers capped at 4-5 per cent of the cost of basic model as well as cash discounts of 4-5 percent from the original equipment manufacturers. In effect, these would amount to a benefit of about fifteen per cent in lieu of capitulating an old 16-tonne truck, says the illustration in the proposal. The previously proposed incentive by way of fifty per cent exemption in excise duty has been eliminated as the Finance Ministry has said that it would not be practical in view of the country’s shift towards a GST regime.

However, the 15-per cent incentive would be limited to the very first two years to help in “smooth progression to regulatory regime of capping the life of the vehicles by the transport industry”. Then on, vehicle owners would be given sufficient time to look for viable replacements through a phased capping of the life of MHCVs to eighteen years as on April 1, 2018; sixteen years as on April 1, two thousand nineteen and ultimately at fifteen years from April 1, 2020. Section fifty nine of The Motor Vehicles Act empowers the government to specify the life of a motor vehicle reckoned from the date of its manufacture. At present, an possessor pays a one-time tax for lifetime but needs to get the fitness certificate renewed after fifteen years to proceed running it.

The government had told the Supreme Court this July that a fresh policy to combat pollution including scrapping of old vehicles and a scheme to substitute about twenty eight million automobiles registered before March 31, two thousand five was underway and would be implemented soon.

Very first Published on: December 16, two thousand sixteen Trio:30 am

Scrapping 15-yr-old vehicles: Plan is to exempt cars, phase out buses, trucks, The Indian Express

Scrapping 15-yr-old vehicles: Plan is to exempt cars, phase out buses, trucks

The Ministry of Road Transport plans to retire only medium and powerful commercial vehicles (MHCVs) — and not passenger cars — that are more than fifteen years old under a proposed vehicle scrapping policy submitted to a Committee of Secretaries for approval.

“In respect of LMVs (light motor vehicles), it is estimated that about forty lakh cars are plying on the road that are more than fifteen years old. These vehicles are estimated to contribute about three per cent of vehicular pollution. Since the overall contribution of cars to emissions is significantly less, hence they are not being considered under this programme,” says the Ministry.

See what else is making news:

According to the Motor Vehicles Act, a light motor vehicle or LMV is defined as a transport vehicle with an unladen weight that does not exceed 7,500 kg, a definition that covers the entire range of passenger cars and SUVs (sports utility vehicles) and MUVs (multi utility vehicles) that are presently available. This includes the Toyota Innova (weight of one thousand eight hundred seventy kg for the stronger auto version), Mitsubishi Pajero (1,935 kg), Ford Endeavour (Two,357 kg) and Mercedes Benz GL Class (Two,535 kg). All vehicles weighing more than 7.Five tonnes are MHCVs.

The ministry cites a examine by AT Kearney which shows that there are 11.Two lakh MHCVs which are more than fifteen years old and contribute to thirty four per cent of the pollution. In all, MHCVs accounted for Two.Five percent of country’s total fleet but contributed over sixty per cent of the air pollution, it says. Vehicle emissions contribute to rise in levels of toxic carbon monoxide, hydrocarbons, nitrogen oxides and particulate matter. Since it would be very difficult to impose a mandatory retirement of vehicles, the ministry argues, it plans to provide some respite and encourage retirement in this segment by proposing a voluntary vehicle modernization programme followed by a regulation on the life of vehicles.

For the very first two years, vehicle owners would be given incentives in the form of scrap value, direct transfers capped at 4-5 per cent of the cost of basic model as well as cash discounts of 4-5 percent from the original equipment manufacturers. In effect, these would amount to a benefit of about fifteen per cent in lieu of giving up an old 16-tonne truck, says the illustration in the proposal. The previously proposed incentive by way of fifty per cent exemption in excise duty has been liquidated as the Finance Ministry has said that it would not be practical in view of the country’s shift towards a GST regime.

However, the 15-per cent incentive would be limited to the very first two years to help in “smooth progression to regulatory regime of capping the life of the vehicles by the transport industry”. Then on, vehicle owners would be given sufficient time to look for viable replacements through a phased capping of the life of MHCVs to eighteen years as on April 1, 2018; sixteen years as on April 1, two thousand nineteen and ultimately at fifteen years from April 1, 2020. Section fifty nine of The Motor Vehicles Act empowers the government to specify the life of a motor vehicle reckoned from the date of its manufacture. At present, an holder pays a one-time tax for lifetime but needs to get the fitness certificate renewed after fifteen years to proceed running it.

The government had told the Supreme Court this July that a fresh policy to combat pollution including scrapping of old vehicles and a scheme to substitute about twenty eight million automobiles registered before March 31, two thousand five was underway and would be implemented soon.

Very first Published on: December 16, two thousand sixteen Trio:30 am

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