NEW DELHI: The Centre's vehicle scrapping policy now hinges on how much "discount" or "incentive" that both the government and automobile manufacturers can offer to those buying new vehicles after scraping the old ones.While the automobile industry has suggested to the government that financial incentive should come from it to accelerate the plan to phase out polluting commercial vehicles that are more than 15 years, the government wants the industry to offer some discount to new buyers as it would boost their sales. It will be mandatory for buyers to produce the scrapping certificate to avail any discount.Union finance minister Nirmala Sitharaman on Friday announced that the government will come out with the vehicle scrapping policy soon as a part of the overall intervention to check the slump in automobile sale. The government has decided to go for voluntary scrapping rather than making it mandatory for people to dump their old vehicles.Sources said several suggestions including the option to offer discount in income tax to those who scrap their old vehicles was discussed at a meeting called by the Niti Aayog last week. The meeting was attended by representatives from heavy industries , road transport and steel ministries besides top functionaries from Niti Aayog. It remains to be seen whether the government will announce any cash incentive to those joining the scraping policy.Meanwhile, the government is working on interventions that would discourage people to renew the registration of commercial vehicles that are more than 15 years. The interventions could include increase in the fee only for renewal of registration of old vehicles and increased frequency of fitness tests that such vehicles would need to undergo.Earlier the road transport ministry had issued a draft proposal of steep increase in fees for fresh registration and renewal of registration fee for diesel and petrol vehicles. But following opposition from the automobile lobby against manifold increase in registration fee for new vehicles, the government has put the proposed revision of "registration fee" on hold till June 2020. The automobile lobby had not objected to hike in fees for renewal of registration for old vehicles.