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15 Year Old Trucks to be Out of Service?

Published On Dec 21, 2016By Mukul Yudhveer Singh

The fate of more than 10 lakh,15 year old trucks and buses is hanging in mystery as the Government of India is considering banning out such vehicles under Voluntary Vehicle Fleet Modernisation Plan (V-VMP). This plan, if implemented along with old vehicles scrapping policy, might impact the majority of heavy vehicles being operated in the country.

The road transport ministry of India has already briefed National Green Tribunal about the developments it has made in terms of policy consideration.

The proposal, weighing the options revolving around old vehicle scrapping and benefits for owners, will soon be presented to various committees of secretaries for approval and suggestions. It is rumoured that the proposal will include recommendations advocating incentives for truck owners scrapping old vehicles.

There are strong chances that some rebate in excise duty or other taxes, in addition to some cash benefits may also be finalised as modalities and incentives for vehicle owners. There are also strong chances of authorities taking a final decision regarding a policy making old vehicles scrapping, 2019 onwards, mandatory.

Heavy vehicles account for less than three percent of total vehicles in India. But these are the cause of more than 60% of total pollution caused by vehicles in the country. It is also estimated that heavy vehicles including old trucks consume the largest share of petroleum based fuels.

The earlier version of the framework for Voluntary Vehicle Modernisation Programme had proposed a half cut in the excise duty, which was denied by the finance ministry. It was also learnt earlier that if the mandatory scrapping policy is finalised, it might financially help the Government of India with steel scrap worth INR 11,500 crores.

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