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Vehicle Scrappage Policy: Explained
“Voluntary Vehicle-Fleet Modernisation Programme” i.e. new vehicle scrappage policy has been launched by the central government to scrap ol…
“Voluntary Vehicle-Fleet Modernisation Programme” i.e. new vehicle scrappage policy has been launched by the central government to scrap old and unfit vehicles.
Prime Minister Narendra Modi said it would help phase out unfit and polluting vehicles in an environment-friendly manner. “We aim to create a viable circular economy and bring value for all stakeholders while being environmentally responsible,” he said.
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What will happen to old vehicles according to Vehicle Scrappage Policy?
Vehicles need to obtain fitness certificates to run on the roads. According to the Ministry of Road Transport and Highways 17 lakh, medium and heavy commercial vehicles are older than 15 years without valid fitness certificates. India has 51 lakh light motor vehicles that are more than 20 years old and 34 lakh over 15 years old.
India does not have a full-fledged infrastructure to scrap all unfit vehicles. If India builds a proper infrastructure to scrap vehicles as per the new policy it will bring more investment and create more jobs. But it does not mean that everyone needs to scrap their vehicle immediately.
How Implementation will happen?
The government will come up with new rules and regulations for the set up of Automated Fitness Centres. These centers will perform testing and scrapping without the consumer-facing duress. Mandatory testing of heavy commercial vehicles will first happen from April 2023, and personal vehicles screening and testing will start from June 2024.
What benefits the owner will get after scrapping their vehicle?
- Users will get a scrappage certificate
- Tax rebates
- Extra discount while buying a new vehicle
- The owner can trade the certificate with someone else and they need not use it themselves.
What if an old vehicle passes the fitness test?
The owner can continue to use their old vehicle but need to pay the charges for re-registration. These charges are proposed to be increased from eight to 20 times. So it will be the owner’s choice to decide whether to scrap the vehicle or pay high charges.