A step towards a new normal and pollution-free environment

New Delhi, March 18: Covid-19 pandemic situation taught us handling of many situations. While leading towards new normal we need to think about the ecosystem of mankind and the environment as a whole. A step towards a new normal and pollution-free environment. Vehicle Scrapping Policy will boost environment-friendly vehicles in the future. 

 

  

 

In the interest of a clean environment and rider and pedestrian safety, the Ministry of Road Transport and Highways is introducing the Voluntary Vehicle-Fleet Modernization Program or “Vehicle Scrapping Policy” which is aimed at creating an Eco-System for phasing out of Unfit and Polluting Vehicles.

The Ministry introducing the Voluntary Vehicle-Fleet Modernization Program or 'Vehicle Scrapping Policy' which is aimed at creating an Eco-System for phasing out of Unfit and Polluting Vehicles.

 

India has 51 lakh Light Motor Vehicles that are older than 20 years and 34 lakh Light Motor Vehicles that are older than 15 years. Around 17 lakh Medium and Heavy Commercial Vehicles are older than 15 years without a valid fitness certificate. Older vehicles pollute the environment 10 to 12 times more than fit vehicles and pose a risk to road safety.

 

 

The new vehicle manufacturer will provide 5% discount against the certificate. They would also be provided a road-tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles. Registration fees may also be waived for the purchase of a new vehicle.

 

Criteria to determine vehicle fitness will be emission tests, braking, safety equipment among many other tests which are as per the Central Motor Vehicle Rules, 1989. Owners of old scrapped vehicles will receive scrapping certificates and scrap values of 4-6% of a new vehicle.

 

 

 

 

The scheme shall provide strong incentives to owners of old vehicles to scrap old and unfit vehicles through registered scrapping centers, which shall provide the owners with a scrapping certificate. Some of these incentives include:

(1) Scrap Value for the old vehicle given by the scrapping center, which is approximately 4-6% of the ex-showroom price of a new vehicle.

(2) The state governments may be advised to offer a road- tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles

(3) The vehicle manufacturers are also advised for providing a discount of 5% on the purchase of new vehicle against the scrapping certificate.

(4) In addition, the registration fees may also be waived for the purchase of a new vehicle against the scrapping certificate.

The tentative timeline for application of the Proposed Scrapping Policy is as follows:

 

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

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

3. Mandatory Fitness Testing for Heavy Comm. Vehicles: 01st April 2023

4. Mandatory Fitness-Testing (Phased manner for other categories): 01st June 2024

 

The Ministry of Road Transport and Highways will promote the setting up of Registered Vehicle Scrapping Facility (RVSF) across India and will encourage public and private participation for the opening up of such centers. Efforts are also being made to set up Integrated Scrapping Facilities across India. Some of the identified places include Alang in Gujarat, where it is being planned to develop a highly specialized center for scrapping among many other potential centers, where different scrapping technologies can be synergized together.