Mahindra, SML Mahindra Join Centre’s Vehicle Scrappage Scheme for Delhi-NCR

New Delhi, June 19 (TNT): The Ministry of Road Transport and Highways (MoRTH) on Friday signed a Memorandum of Understanding (MoU) with Mahindra & Mahindra Ltd. and SML Mahindra for implementation of the Government of India’s scheme aimed at replacing old trucks and buses in the Delhi-NCR region.

Under the agreement, the two vehicle manufacturers will offer an 8 per cent discount on the ex-showroom price of eligible trucks and buses purchased under the scheme, an official release said.

For electric vehicles, the discount will be capped at the level applicable to an equivalent Internal Combustion Engine (ICE) vehicle in the same Gross Vehicle Weight (GVW) category.

The Centre will provide a 5 per cent interest subvention and fixed monthly fuel vouchers for a period of five years to eligible beneficiaries under the scheme.

Participating State Governments will extend up to 100 per cent concession on motor vehicle tax for ten years and waive registration fees for eligible vehicles.

Earlier this week, Ashok Leyland, Switch Mobility and Tata Motors had also signed similar agreements with the government for implementation of the scheme.

Officials said the five participating manufacturers together account for around 75 per cent of the trucks and buses market, providing substantial coverage for the rollout of the vehicle replacement initiative in the Delhi-NCR region.

The scheme is aimed at encouraging the replacement of older, polluting commercial vehicles with cleaner and more fuel-efficient alternatives, thereby contributing to improved air quality and reduced vehicular emissions.

TNT KS