The Rajasthan Cabinet on Tuesday approved the new vehicle scrapping policy-2025 for phasing out unfit and polluting vehicles from the roads and disposing them of in a scientific and safe manner. The State Cabinet also approved the second revised cost price proposal for the upcoming oil refinery at Pachpadra.
After the Cabinet meeting, Deputy Chief Minister Prem Chand Bairwa said that the State government would promote the establishment of registered vehicle scrapping facilities and give discount on the purchase of new vehicles. Vehicles older than 15 years will be eligible for scrapping with a digital and transparent method.
“Based on the certificate of deposit, a discount of up to 50% and a maximum of ₹1 lakh on the motor vehicle tax will be given on the purchase of a new vehicle,” Mr. Bairwa said. He said the new policy would help strengthen the circular economy and provide cheaper raw materials to the automobile, steel, and manufacturing sectors.
The Deputy CM said the policy would include special incentives to attract investment in the registered scrapping units, including subsidies on capital investment, exemption from State taxes, interest subsidies, and concessions on stamp duty and electricity charges.
On the Pachpadra project, Parliamentary Affairs Minister Jogaram Patel said the revised cost of the oil refinery would be ₹79,459 crore, with the debt-equity ratio remaining at 2:1. The State government’s equity stake in the project has been fixed at 26%, amounting to ₹6,886 crore. Mr. Patel said the State government would contribute an additional ₹565.24 crore as equity capital because of the increase in the cost. The oil refinery is likely to be commissioned at Pachpadra in January 2026, for which Prime Minister Narendra Modi would be invited, Mr. Patel said.
Published – December 31, 2025 12:07 am IST
