Market to Decide Scrap Value of Private Vehicles: Nitin Gadkari

New Delhi: In a written reply to the Lok Sabha, Union Minister for Road Transport and Highways, Nitin Gadkari, clarified that the government will not intervene in determining the fair price for scrapping private vehicles. Instead, market forces will dictate the value based on the vehicle’s condition.

“There is no intervention by the Government in determination of the 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,” Gadkari stated.

He further explained that Reserve Vehicle Scrapping Facility (RVSF) units, operated as private entities, are tasked with assessing and determining the scrap value of vehicles based on their physical state. This approach aligns with the government’s policy of minimizing interference in private market operations.

However, for government-owned vehicles, the scrap value is determined by the Ministry of Steel based on a pre-set reserve price.

Incentives for Scrapping Private Vehicles

To alleviate the financial burden on citizens, particularly for low-income groups, the government has introduced incentives for scrapping vehicles. These include waiving registration fees for new vehicles purchased using the “Certificate of Deposit” issued upon scrapping an old vehicle.

The scrappage policy, introduced to encourage the phasing out of unfit vehicles, aims to promote eco-friendly mobility and boost the automotive sector by incentivizing new vehicle purchases.

Gadkari emphasized that these measures aim to strike a balance between market-driven operations and citizen welfare. The policy is expected to enhance road safety, reduce pollution, and support the economy through increased demand for new vehicles.

This announcement comes as the government continues to refine its vehicle scrappage policy