Finance Minister Nirmala Sitharaman on Wednesday said she has allocated funds to axe old vehicles owned by the Central government and that states will also be helped to replace ageing vehicles and ambulances.
Presenting the Budget for 2023-24, she said replacing old and polluting vehicles was vital for greening the economy.
The Minister said coastal shipping would be promoted as an energy efficient and lower cost mode of transport, both for passengers and freight, through the PPP mode with viability gap funding.
The government has already announced that more than nine lakh vehicles owned by Central and state governments, transport corporations and public sector undertakings older than 15 years will go off the road from April 1.
New vehicles will take their place.
The rule shall not apply to special purpose vehicles (armoured and other specialised vehicles) used for operational purposes by armed forces and security personnel.
(With Agency inputs)