Vehicle Scrapping Policy to be implemented to provide an ecosystem to phase out unfit and polluting vehicles
The Ministry of Road Transport and Highways, Government of India introducing the Voluntary Vehicle-Fleet Modernization Program or ‘Vehicle Scrapping Policy’ is aiming at creating an Eco-System for phasing out Unfit and Polluting Vehicles.
“A first of its kind initiative, it will formalize vehicle scrapping industry and boost availability of low-cost raw materials for automotive, steel and electronics industry. It will also create employment opportunities for more than 35,000 people, ” said union minister for road transport nd highways Nitin Gadkari today.
How will it work ?
Fitness of vehicles will be assessed through Automated Fitness Centres.
It will be applicable on commercial vehicles older than 15 years and private vehicles older than 20 years.
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 vehicle will receive scrapping certificate and scrap value of 4-6% of new vehicle. The new vehicle manufacturer will provide 5% discount against the certificate. Road-tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles.
Registration fees may also be waived for purchase of new vehicle.
