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Vehicle Scrapping Policy Launched

Vehicle Scrapping Policy Launched

Why in news?

  • Recently, the Prime Minister while addressing the Investor Summit in Gujarat via video conferencing launched the Vehicle Scrapping Policy/National Automobile Scrappage Policy.
  • The Summit will invite investment for setting up vehicle scrapping infrastructure under the Vehicle Scrapping Policy.
  • The Vehicle Scrapping Policy was announced in March 2021 by the government.
  • The policy is estimated to cover 51 lakh Light Motor Vehicles (LMVs) that are above 20 years of age and another 34 lakh LMVs above 15 years of age.

About the Vehicle Scrappage Policy

  • Old vehicles will have to pass a fitness test before re-registration and as per the policy government commercial vehicles more than 15 years old and private vehicles which are over 20 years old will be scrapped.
  • As a disincentive, increased re-registration fees would be applicable for vehicles 15 years or older from the initial date registration.
  • 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 to provide incentive to owners of old vehicles to scrap old and unfit vehicles.

Key Features

  • Fitness testing: The government plans to set up between 450-500 automated vehicle fitness testing stations across India on a PPP basis. Private vehicles – which are over 20 years old – will have to undergo fitness tests, at an estimated cost of Rs 300-400 per test.
  • Scrappage: A total of 60-70 vehicle scrapping centers will also be built, situated no further than 150-200 kilometers away from any location in India.
  • Green Tax: Vehicles that pass the automated tests will be subjected to a ‘green tax’, which will see owners shell out an additional 10 percent to 25 percent of road tax at the time of the renewal of the vehicle’s fitness certificate, along with re-registration fees.
  • Penalties: Those who choose to drive a vehicle that has failed the automated test will face substantial penalties, and such vehicles could also be impounded.
  • Choice of owners: The scrappage policy leaves the choice of scrapping to the owner of the vehicle, with Gadkari saying the automated tests will place emphasis on vehicle fitness, and not its age.

Benefits of the policy

  • Policy has several economic and environmental benefits. It will play a big role in modernising and phasing out the old polluting vehicles in an environment friendly manner.
  • This policy of modernity in mobility will reduce the burden of travel and transportation.
  • It will also promote self-reliance of India in the auto sector and metal sector.
  • According to the Union Road Transport and Highways Minister, Nitin Gadkari, currently, India has 10 million cars without valid fitness parameters that adds to pollution and fuel costs. Thus, replacement of old vehicles will positively benefit environment.
  • It will generate about 50000 generate direct and indirect employment.

Other Initiatives to Curb Vehicular Pollution:

  • Go Electric Campaign
  • FAME India Scheme Phase II.
  • Electric Vehicles (EV) Policy 2020 for Delhi.
  • Hydrogen Fuel Cell Based Bus and Car Project.
  • National Electric Mobility Mission 2020.


Mussoorie Times

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