PostBudget Memorandum

The total number of more than 10 year old vehicles for commercial use and more than 15 year old vehicles for private use in the seven cities are given in the table below:

Type of Vehicle	Mumbai	Kolkata	Chennai	Bangalore	Hyderabad	Delhi*	Ahmedabad
Taxi	35676	19588	9026	2604	1320	0	2671
Trucks		50089	17976	20822	22038	0	6083
Buses	7967	6903	7810	7250	2384	0	10564
Three Wheelers	24577	5841	16407	22837	20015	0	25029
Two Wheeler	199517	147603	286856	281899	343433	867404	143695
Car	228030	157142	96598	54746	30447	236549	22950
Total Commercial Use Vehicles	68220	82421	51219	53513	45757	0	44347
Total Private Use Vehicles	427547	304745	383454	336645	373880	1103953	166645

* Vehicles for Commercial Use in Delhi have already been phased out as per Supreme Court orders.

Based on 50% of Excise Duty and Sales Tax rebate, the total cost of incentive to Central and State Governments and income generated from the project is estimated as given below:

(Rs Crores)

City	Scrapped Vehicle Population		Cost of Incentives			Income Generated from Project Modernfleet
City	Commercial Use	Private Use	Excise Duty	Sales Tax	Total	Excise Duty	Sales Tax	Total
Mumbai	68220	427547	901	505	1406	901	505	1406
Kolkata	82421	304745	844	543	1387	844	543	1387
Chennai	51219	383454	510	326	836	510	326	836
Bangalore	53513	336645	373	257	630	373	257	630
Hyderabad	45757	373880	283	209	492	283	209	492
Delhi*	0	1103953	918	510	1428	918	510	1428
Ahmedabad	44347	166645	194	141	335	194	141	335
Total	345477	3096869	4023	2493	6516	4023	2493	6516

* Vehicles for Commercial Use in Delhi have already been phased out as per Supreme Court orders. Source SIAM proposal on Project Modern Fleet submitted in July 2002

Assuming that all vehicles sold under the programme are replacements and as such additional sales, over and above the normal sale, there will be a revenue positive impact.

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