To boost the movement of used vehicles, the Delhi government is planning to provide a subsidy of up to Rs 50,000 in road tax for new cars with better emission standards.

Transport department officials have prepared a draft policy on scrapping vehicles, which is expected to be shared soon with the public for their inputs.

The proposed policy is currently under review by the finance department for approval, as it involves the use of public money in the form of subsidies, as reported by TOI.

A senior government official highlighted the issue that many vehicles that have completed their life cycle are still plying on the city roads, contributing to pollution. While the transport department had earlier seized such vehicles for scrapping, the effort was halted due to the intervention of the Delhi High Court.

Following the court’s guidance, the government has prepared a draft policy on vehicle scrapping, which is likely to have different exemptions for commercial and private vehicles.

Under the existing rules, petrol vehicles older than 15 years and diesel vehicles older than 10 years are not allowed to operate in the National Capital Region.

According to the Statistical Handbook – 2023, around 55 lakh vehicles were deregistered in Delhi in 2021-22 and 2022-23, but only 1.4 lakh vehicles were scrapped. Instead, owners obtained no objection certificates from the transport department to register 6.3 lakh vehicles outside NCR.

“This shows that people are still holding on to their old vehicles, either contributing to air quality problems, or parking them in residential areas or in lots,” an official said.

“The new policy aims to motivate people to phase out old, polluting vehicles and invest in new vehicles,” the official said.

On scrapping their vehicles, individuals will receive a “Deposit Certificate” which will have to be submitted along with the registration papers when purchasing a new vehicle to avail road tax exemption.

According to officials, this certificate will be valid for a specific period and the tax concession will be applicable only to the category of vehicle that is being scrapped.