Union Minister for Road Transport and Highways Nitin Gadkari informed the Lok Sabha in writing that the government would not step in to decide on a vehicle's fair scrap price. The fair price of the car to be scrapped will be decided by market forces.

New Delhi [India]: Union Minister for Road Transport and Highways Nitin Gadkari stated in a written response to the Lok Sabha that the government will not step in to decide on a vehicle's fair price for scrapping. The fair price of the car to be scrapped will be decided by market forces.

"The government doesn't get involved in figuring out how much it should cost to scrap private cars. Gadkari stated, "The market forces determine the price of these vehicles based on the condition of the vehicle to be scrapped."


The minister added that the Reserve Vehicle Scrapping Facility units, which are private organizations, are in charge of figuring out the cost based on the state of the vehicle.
Regarding paying car owners, the minister said that the scrap value of private vehicles is set by market forces, whereas the Ministry of Steel sets the reserve price for government vehicles.

Incentives for vehicle scrapping are offered in an effort to lessen the financial burden on the public, particularly on low-income groups. For example, new cars bought with a "Certificate of Deposit" given upon scrapping are exempt from registration fees.


Additionally, when purchasing a new car, motor vehicle tax breaks of up to 25% are available for private vehicles and 15% for commercial vehicles.

He 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" .