AP awaits 150 crore central aid to scrap old vehicles

By DECCAN CHRONICLE | dc correspondent

2 February 2023

Vijayawada: Andhra Pradesh government is eagerly awaiting central financial assistance of nearly 150 crore to go ahead with scrapping of old and polluting vehicles in the state.

Union finance minister Nirmala Sitharaman, presenting the Union Budget 2023–24 in the Lok Sabha in New Delhi on Wednesday, said replacing old polluting vehicles is an important part of greening the country’s economy. She assured financial support to states for replacing the old vehicles. In this regard, AP has high expectations of financial aid from the centre.

Earlier, union road transport and highways ministry had also come up with a national automobile scrappage policy, with provision that states and UTs will be provided up to 25 percent 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 percent for personal and non-transport vehicles and up to 15 percent for commercial and transport vehicles. The concession will be available for up to 15 years for non-transport and eight years for transport vehicles.

AP transport authorities maintain that scrapping of old vehicles is voluntary in nature. They said they are yet to find out the number of old vehicles fit for scrapping in the state based on their age from the date of their initial registration with the transport department.

AP transport additional commissioner S. Prasada Rao said, “We are expecting nearly 150 crore from the centre to go ahead with scrapping of old vehicles in the state.” AP has over 1.5 crore vehicles. Of them, nearly 90 percent belong to non-transport category.

Observers say centre will have to come up with legislation on scrapping of old and polluting vehicles in both public and private sectors, as the subject falls under the Concurrent list. Thus, there may not be any support to motorists who voluntarily opt for scrapping their vehicles. Moreover, vehicle scrapping facilities are yet to be set up under public and private partnership.

However, the move will generate employment. In addition, once old vehicles are scrapped, there will be lesser vehicular pollution in the state.

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