Vehicle Scrapping Policy

AMK

In Lok sabha Vehicle Scrapping Policy was announced by the Minister for Road Transport and Highways, Shri Nitin Gadkari, 

He said in the interest of a clean environment and rider and pedestrian safety Voluntary Vehicle-Fleet Modernization Program (VVMP) or Vehicle Scrapping Policy is being introduced 

The objectives of the Voluntary Vehicle-Fleet Modernization Program (VVMP) or Vehicle Scrapping Policy are to reduce population of old and defective vehicles, formalize the currently informal vehicle scrapping industry and boost availability of low-cost raw materials for automotive, achieve better fuel efficiency

To achieve the reduction in vehicular air pollutants to fulfil India’s climate commitments, improve road and vehicular safety,

He added the policy is expected to attract additional investments of around Rs. 10,000 Crore and 35,000 job opportunities,

The main criteria for a vehicle to be scrapped is basically based on the fitness of vehicles through the Automated Fitness Centres in case of commercial vehicles and Non-Renewal of Registration in case of the private vehicles,

According to the Police a Vehicle failing the fitness test or failing to get a renewal of its registration certificate may be declared as End of Life for the Vehicle

Major Proposals

As per the Policy commercial vehicles be de registered after 15 years in case of failure to get the fitness certificate and from the date of initial registration increased fees for fitness certificate and fitness test may be applicable for commercial vehicles 15 year onwards

Whereas Private Vehicles be de-registered after 20 years if found unfit or in case of a failure to renew registration certificate, from the date of initial registration increased re registration fees will be applicable for private vehicles 15 year onwards,

For the vehicles from the date of registration of the Central Government, State Government, Municipal Corporation, Panchayats, State Transport Undertakings, Public Sector Undertakings and autonomous bodies with the Union and State Governments may be de registered and scrapped after 15 years 

The owners will be provided Scrapping certificate and incentives to owners of old vehicles to scrap old and unfit vehicles through registered scrapping centres will be given 

Proposed Incentives

A Scrap Value for the old vehicle provided by the scrapping centre will be fixed, which will be approximately 4 to 6% of ex showroom price of a new vehicle

A road- tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles may be advised to the State Government 

A discount of 5% on purchase of new vehicle against the scrapping certificate will be advised to the vehicle manufacturers

For purchase of new vehicle against the scrapping certificate the registration fees may also be waived

Registered Vehicle Scrapping Facility (RVSF) centres will be opened across the country and also Integrated Scrapping Facilities will be set up

TENATIVE DATES

 Rules for Fitness Tests and Scrapping Centres: 01st October 2021

Scrapping of Government and PSU vehicles above 15 years : 01st April 2022

Mandatory Fitness Testing for Heavy Commercial Vehicles: 01st April 2023

Mandatory Fitness Testing : 01st June 2024

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