The government of Russia's Nizhny Novgorod Region on the Volga has doubled the premium paid to users of old cars who agree to have their car scrapped in line with a new disposal scheme, the governor's press service said.
Following the example of many Western countries, Russia launched a program on March 8 offering 50,000 rubles ($1,680) for the recycling of old vehicles in a bid to support Russia's ailing car industry.
A local program in the Nizhny Novgorod Region also offered 50,000 rubles for the scrapping, and will double that sum from April 1, on condition that old car owners buy new cars made in the region. All premiums added up, altogether, an old car user living in the region will be able to buy a new car with a discount of more than $5,000.
The Russian disposal program's money is provided to those ready to have their 10-year-or-older car scrapped and buy a new one from an Industry and Trade Ministry-compiled list of over 60 Russian and foreign car brands produced in Russia.
Industry and Trade Minister Viktor Khristenko earlier said the weak point of the plan, that could theoretically expand to Russia's estimated 14 million 10-year-or-older cars, is the lack of a developed car scrapping infrastructure, with a mere 153 disposal stations having so far been licensed.
The scrapping experiment will take place in 49 Russian regions out of more than 80 and will last until November 1, 2010. Khristenko also said a smoothly functioning scrapping program should be ready by September.
The government has allocated some 10 billion rubles ($370 mln) to the program and predicts that some 200,000 new cars, mainly domestically produced Ladas, Chevrolets and Opels, will be sold in 2010 by more than 1,500 authorized dealers in line with the program.
A total of 7,000 cars were sold in line with the new scrapping scheme in the first week after the program was launched.
NIZHNY NOVGOROD, March 24 (RIA Novosti)
