The government of India has decided to deregister the 20-year-old commercial vehicles from April 2020. This means all the commercial vehicles registered on or before 2000 will be deregistered from the designated time. This phasing out process comes as part of the government’s new scrap policy. However, the private cars and two-wheelers won’t be affected due to this decision.
According to an estimate of the Indian government, around 7 lakh commercial vehicles are plying on roads that were registered before 2000 and all these vehicles will be off the road from April 2020. Previously, the Indian government was mulling the plan to phase out the 15-year-old commercial vehicles, but in the new and revised strategy, it has decided to increase the cap to 20 years.
Interestingly, April 2020 will also mark the implementation of the all-new stricter BS-VI emission norm. Meanwhile, the affected owners of the 20-year-old deregistered commercial vehicles are expected to receive tax incentives from the government. Also, the vehicle manufacturers too are likely to offer discounts to the customers who will buy new vehicles after scraping their old ones. The government has already proposed to reduce the GST rate to 18% from current 28% for the new commercial vehicles that will be purchased after scrapping the old models.
As the government of India is pushing the electric mobility, the affected owners of the deregistered commercial vehicles can hope to receive benefits in the purchase of EVs under the FAME scheme. All these modes come as part of the government’s bigger plan to significantly reduce the pollution level across the country. The old commercial vehicles are mostly accused of contributing a significant amount to the overall air pollution. With this new strategy, the pollution level is likely to come down slightly across the country.