The Cabinet meeting chaired by Chief Minister Dr. Mohan Yadav held at Mantralaya on Tuesday decided to promote scrapping under the Registered Vehicle Scrapping Facility (RVSF). It approved a 50% rebate in motor vehicle tax on new non-transport and new transport vehicles registered against a Certificate of Deposit issued for scrapping BS-I and earlier emission standard vehicles, as well as medium/heavy goods and passenger vehicles manufactured under BS-II norms, subject to conditions.
During 2024–25, the state granted tax rebates of nearly ₹17.05 crore on 1,563 new vehicle registrations. At present, there are about 99,000 BS-I and BS-II category vehicles on the road. Providing a 50% rebate in motor vehicle tax to these vehicles will result in a financial impact of ₹100 crore.
It is noteworthy that the Ministry of Road Transport and Highways, Government of India, will provide special assistance of ₹200 crore to Madhya Pradesh to promote scrapping through the Registered Vehicle Scrapping Facility (RVSF). For controlling air pollution in India, the Bharat Stage (BS-I) emission norms were first introduced in April 2000.