Market Decides Vehicle Scrap Prices, Govt Has No Role: Nitin Gadkari

In a recent written reply to the Lok Sabha, Nitin Gadkari, the Union Minister for Road Transport and Highways, said the market forces will play a crucial role in deciding the prices of vehicles to be scrapped, rather than government intervention.

Nitin Gadkari's Stance on Vehicle Scrap Prices

The Minister firmly stated that there would be no interference by the government in determining the fair price of private vehicles to be scrapped. 

"There is no intervention by the Government in the determination of fair price of private vehicles to be scrapped. The price of these vehicles is decided by the market forces as per the condition of the vehicle to be scrapped," said Gadkari.

Reserve Vehicle Scrapping Facility Units and Price Determination

The minister also explained that the Reserve Vehicle Scrapping Facility (RVSF) units, set up as private entities, manage the price based on vehicle condition.

Compensation and Incentives for Vehicle Owners

While government vehicles have a reserve price determined by the Ministry of Steel, private vehicles' scrap value will be determined by market forces. To provide relief to citizens, especially those in low-income groups, various incentives have been introduced for scrapping vehicles.

These incentives include waiving registration fees for new vehicles purchased with a "Certificate of Deposit" issued upon scrapping and offering concessions in motor vehicle tax.

Gadkari said, “Provided that this concession shall be available up to eight years, in case of transport vehicles, and up to fifteen years, in case of non-transport vehicles.”

Crackdown on End-of-Life Vehicles

On impounding end-of-life vehicles the Minister said, “The crackdown on end-of-life vehicles (ELVS) was resumed by Transport Department, GNCTD from 11.10.2024. Since then, 2,445 vehicles have been impounded by the enforcement teams of the Transport Department, GNCTD.”

Promotion of Greener Alternatives and Environmental Compliance

Gadkari also mentioned the government's initiatives to promote greener alternatives, such as electric vehicles, through schemes like the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE).

These schemes provide incentives and establish charging infrastructure to accelerate the adoption of electric vehicles. Additionally, measures have been put in place to ensure the environmentally sound disposal of vehicle parts, adhering to CPCB standards for pollution reduction.

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