If you think you will be getting sops while replacing your old car with a new one, read the fine print that government has just added.The Indian government is planning not to give sops to those buying fuel-guzzling vehicles.
Reportedly, cars and utility vehicles having a
It is likely that big SUV buyers will be left out of the bracket as majority of the cars in India have fuel efficiency in excess of 25 km per litre.
As per the proposed Voluntary Vehicular Fleet Modernisation Policy (V-VMP), vehicles bought before April 2005 or those below BS IV emission standards will be eligible for incentives if replaced by new ones.
"Details of the plan are yet to be worked out. However, one thing is certain that the incentives won't be offered on fuel-guzzling cars. Otherwise, the motive of this policy would be defeated. Some minimum threshold of fuel efficiency would be worked out. It could be 13-14 km per litre,” a source told ET.
The Indian road transport ministry had unveiled a draft of the proposed V-VMP, which suggests complete excise exemption for state transport buses to encourage public transport to shift to newer and higher capacity buses which will also help decongest roads.
Those opting for V-VMP will have to deposit documents relating to the vehicle at the recycling centre. After verification, the owner will get a V-VMP certificate and the price for the scrap. Then he has to provide the certificate to the dealer while buying the new vehicle to avail of the discount.