Deputy CM raises concerns over vehicle scrapping policy

Deputy Chief Minister Mukesh Agnihotri today raised the issue of financial implications of the Vehicle Scrapping Policy in Himachal considering the state’s topographical constraints and sparse vehicle population.

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Agnihotri today participated in the national-level meeting of Transport Ministers and 42nd meeting of Transport Development Council held under the chairmanship of Union Minister for Road Transport and Highways Nitin Gadkari today at New Delhi today. “Scrapping of vehicles in Himachal would prove to be both costly and cumbersome,” he said. He sought the Centre’s support in addressing various issues concerning the transport sector in Himachal Pradesh.

Gadkari assured that the Central government would carefully consider the issues raised by Himachal Pradesh and other states. He emphasized that the Ministry of Road Transport and Highways (MoRTH) was committed to providing necessary support to address these challenges, particularly in the areas of vehicle scrapping, infrastructure development and the promotion of cleaner, more sustainable transport solutions.

“Himachal Pradesh would require to scrap over 7,000 government vehicles which would impact the functioning of key state departments. Therefore, a more favourable financial assistance structure be ensured for the smooth implementation of the scrapping policy,” he stated. He also proposed that the scrapping incentives be provided as grants instead of loans to ease the financial strain on the state. Gadkari assured that Nitin Gadkari assured that the interests of hilly states along-with Union territories would be protected.

The Deputy CM also sought extension of the deadline for availing the Special Central Assistance (SCA) for capital investment until March 31, 2025. He urged Gadkari to extend the date for seeking incentive under ATS and scrapping of vehicles from January 31 to March 31. He also raised the issue of challenges posed by the All India Tourist Permit (AITP) buses operating within Himachal as stage carriage despite there being a huge difference in quantum of taxes.

Agnihotri urged the Central Government to support the creation of common electric infrastructure for State Transport Undertakings (STUs), particularly on key routes like Chandigarh-Delhi, to promote the transition to electric mobility and improve operational efficiency.

He stated that the Himachal Government was developing an urban ropeway network project at a cost of Rs 1,734.70 crore which would be India’s first largest ropeway network and second largest in the world after Bolivia. The work on this project is likely to start by June 2025 and will be completed within a period of five years. This project would significantly improve public transport in the state and help reduce traffic congestion and pollution.