NEW DELHI: Automobile companies are ready to offer up to 1% of vehicle prices as discount or incentive if customers scrap old vehicles and buy new ones. The government is yet to take a final call on whether it would also give any incentive to encourage phasing out of old vehicles.
Sources said the government had sought a commitment from the automobile companies about their incentive to such buyers after it revived intense consultations on the proposed policy, which is likely to boost the sales of new vehicles.
The proposal is being discussed among heavy industries, transport and steel ministries. A final view on this proposal, which is being considered for more than four years, is likely to be out soon.
The government had originally considered both the options — regulatory, and voluntary — regime to roll out the scheme. But a group of secretaries had favoured a voluntary scrapping policy. Sources said now it’s completely up to the government to take a call on whether it would be voluntary or mandatory.