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Itar-Tass reported that Russia will launch the federal project to dispose used cars in the Kaluga region on March 8 that will last until November 1st 2009.

Some 16 car dealers and three car scrapping companies were selected in the region. Complete cars produced after 1999 with the weight of 3.5 tonnes and being in possession of the latest car owner more than a year are subject to scrapping. All people wishing to buy a new car instead of the old one subject to disposal can have the right for a discount of RUB 50,000.

Under the terms of the experiment a car owner pays RUB 3,000 for the disposal services. Several procedures of the federal program were developed in the Kaluga region. The car owner drops the car from the registration database independently in the traffic police and hands it in a disposal station. A car dealer or a disposal station drops the car from the registration database under the power of attorney. A hotline was opened for the information support of the experiment in the regional ministry of economic development.

Under the program for the disposal of used cars the Kaluga region hopes to whip up the demand in the cars. In the previous year the demand fell substantially by 22%, but now it started growing.

(Sourced from Itar-Tass)