Budget 2025: Telangana Gets ₹176.5 Crore SASCI Incentive for MV Tax Concession, Vehicle Scrapping Policy

Telangana is set to receive a financial incentive of Rs. 176.5 crore from the central government under the Special Assistance to States for Capital Investments ( SASCI ) scheme for the financial year 2024-25. The funds are expected to be released soon, following a recommendation by the Ministry of Road Transport and Highways to the Finance Ministry.

According to Indian Express, the Telangana government met the eligibility criteria for the incentive by successfully implementing key initiatives required by the central government. Among these initiatives, the state introduced a Motor Vehicle ( MV ) Tax Concession, announced a vehicle scrapping policy, and established Automated Testing Stations ( ATSs ) across multiple transport districts.

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Out of the total amount, the Telangana government will receive Rs. 50 crore for implementing the Motor Vehicle Tax Concession, which is aimed at making transportation more efficient and affordable. The state earned Rs. 75 crore for announcing the vehicle scrapping policy, a step taken to phase out old and unfit vehicles to promote safer and eco-friendly transportation.

Another portion of the incentive was allocated for the establishment of Automated Testing Stations ( ATSs ). Telangana set up 37 ATSs, with 21 of them located in priority districts, making the state eligible for Rs. 31.5 crore. The remaining ATSs in non-priority districts contributed to an additional Rs. 20 crore incentive.

The SASCI scheme is designed to encourage states to improve their infrastructure and implement necessary policy reforms. By meeting these requirements, Telangana has demonstrated its commitment to modernizing transport infrastructure, enhancing road safety, and adopting sustainable policies in line with central government guidelines. The financial support from the Union government is expected to help the state further develop its road transport system and ensure better services for the public.

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The funds will be utilized to strengthen Telangana’s transport sector by making road travel safer, more efficient, and environmentally friendly. This is expected to benefit both the government and the people by ensuring compliance with national transport safety standards and also supporting economic growth in the region.

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