Nitin Gadkari Clarifies No Government Intervention in Vehicle Scrapping Prices

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New Delhi: In a written response to the Lok Sabha, Union Minister for Road Transport and Highways, Nitin Gadkari, confirmed that the government will not intervene in determining the fair price for scrapping vehicles. According to Gadkari, the price of vehicles to be scrapped will be decided by market forces based on the condition of the vehicle. "The price of these vehicles is decided by the market forces as per the condition of the vehicle to be scrapped," Gadkari stated, noting that Reserve Vehicle Scrapping Facility units, set up as private entities, are responsible for determining scrap values. He clarified that while government vehicles have a reserve price set by the Ministry of Steel, private vehicles' scrap value is entirely market-driven. To mitigate the financial strain on vehicle owners, particularly low-income groups, the government has introduced several incentives. These include waiving registration fees for new vehicles bought with a "Certificate of Deposit" issued upon scrapping. Additionally, buyers of new vehicles can receive up to a 25% concession in motor vehicle tax for private vehicles and 15% for commercial vehicles, provided the vehicle is scrapped within a specified time frame—up to eight years for transport vehicles and 15 years for non-transport vehicles.