Bihar’s New Vehicle Scrappage Policy:The Bihar government is all set to overhaul its vehicle scrappage policy under which vehicles 15 years old and above will be phased out. The decision comes after years of limited success under the existing framework, which saw fewer than 2,000 old vehicles scrapped out of an estimated 2.5 million eligible ones.
Why Bihar Is Reworking Its Scrappage Policy?
Bihar’s transport authorities admit that while the current scrappage policy technically exists on paper, it has failed to gain traction among vehicle owners. Under the earlier framework, scrapping a vehicle older than 15 years offered tax rebates up to 25% for private vehicles and 15% for commercial ones along with relief on outstanding penalties and dues.
Policeman mowed down by vehicle in Jharkhand’s Palamu
Bihar’s New Vehicle Scrappage Policy
While the updated policy is still under preparation and expected to be formally announced soon officials have made it clear that much larger financial incentives will be central to its design. These could include:
- Substantial tax rebates on scrapped vehicles beyond the current 25% slab.
- Relaxation or waivers of outstanding penalties and fees for older vehicles.
- Potentially enhanced benefits when buying a new vehicle in exchange for the scrapping certificate.
The government hopes that these measures will finally motivate owners of ageing vehicles including cars, buses, and commercial transports to voluntarily scrap them, reducing both road congestion and harmful emissions.
Bihar isn’t alone in this endeavor. Government policies related to vehicle scrapping in India are not only limited to the central government initiative to remove such vehicles which cause air pollution and are unsafe on the roads.
As an example, the national Vehicle Scrappage Policy, which was announced in the year 2021, is such that the states are encouraged to give road tax rebated of up to 25% for private cars and up to 15% for commercial vehicles. Besides, it also incentivizes the makers to give discounts for new car purchases against the scrapping of the old ones.
What Vehicle Owners Should Know?
If your vehicle is quite old, that is 15 years or more, then this policy change may just be your saving grace. The government at the state level is said to be thinking of allowing the scrappage to extend until after March 31, 2026 which would mean that the owners would be able to utilize the old planned rebates and incentives for a longer time period. The officials are of the opinion that it is better to wait for the official announcement and then consult the Department of Transport for the detailed guidelines after the policy is declared.
