PM Modi launches Vehicle Scrappage Policy to phase out unfit, polluting vehicles

Prime Minister Narendra Modi launched the Vehicle Scrappage Policy on Friday Aug 13, 2021 at the Gujarat Investor Summit. The policy will help phase out unfit and polluting vehicles in an environment friendly manner.

The Vehicle Scrappage Policy intends to create scrapping infrastructure in the form of automated testing stations and registered vehicle scrapping facilities (RVSF) across the country. The policy is expected to bring in investments of around Rs. 10,000 crores and create 35,000 job opportunities. Some useful pointers:

– Union Minister Nitin Gadkari said that commercial vehicles over 15 years old and personal vehicles over 20 years old will be marked for scrapping if they fail to pass the fitness test.

– The mandatory fitness testing for heavy commercial vehicles will start from 1st April, 2023 and for other categories, in a phased manner, from 1st June 2024.

– The scrapping of Government and PSU vehicles above 15 years of age will kick in earlier from 01st April 2022.

Incentives of the policy 

Strong incentives have been proposed for owners of old vehicles to scrap old and unfit vehicles through registered scrapping centres –

– A scrap value of the ex-showroom price of vehicle ranging from 4-6% will be given to the owner if they choose to scrap the vehicle.

– A rebate of upto 25% will be given in Road Tax.

– Vehicle manufacturers will be advised to give 5% discount on new vehicles against a scrapping certificate.

– No registration fees for purchase of new vehicle against the scrapping certificate.

In the next few weeks, the MoRTH will publish draft notifications to solicit comments and views of all involved stakeholders.

Also Read: Vehicle Scrapping or Recycling? Indian Perspective