Vehicle Scrappage Policy announced.

Union Minister Nitin Gadkari on Thursday announced the much awaited vehicle scrappage policy in Lok Sabha.

Stating it to be a win-win policy for scrapping old vehicles, the transport minister said that recycling will reduce cost of components for the automobile industry.

States can also offer discount on registration and road tax for buying new vehicles against the scrapped one, he added.
A vehicle failing the fitness test or failing to get a renewal of its registration certificate may be declared as 'end of life vehicle'.
"The policy is aimed at reducing the population of old and defective vehicles, bringing down vehicular air pollutants, improving road and vehicular safety," Gadkari said.
"Besides, it will help in achieving better fuel efficiency, formalising the informal vehicle scrapping industry, and boost the availability of low-cost raw materials for the automotive, steel and electronics industry," he added.
Gadkari also emphasised that work is underway to introduce schemes that will make India the world's largest automobile hub in the next 5 years.
On implementation of FASTag, the minister informed that the existing toll collection system will be scrapped in a year and FASTag will be implemented completely.
Some features of vehicle scrappage policy are as follows:
#Customers will get scrap value for the old vehicle by the scrapping centre, which is approximately 4-6 per cent of ex-showroom price of a new vehicle.
# The state governments may be advised to offer a road tax rebate of up to 25 per cent for personal vehicles and up to 15 per cent for commercial vehicles.
# The vehicle manufacturers have been advised for providing a discount of 5 per cent on purchase of new vehicle against the scrapping certificate.
# In addition, the registration fees may also be waived off for purchase of new vehicle against the scrapping certificate.
# Increase in RC , fitness certificate renewal fee for personal and commercial vehicles respectively and additional penalty for delay in renewal of certificates.
# Additional levy of green tax on old vehicles by states.
# Mandatory automated fitness test; those failing in test to be de-registered automatically
# Incentive for buying new vehicles against scrapped ones: States can offer discount in road tax & vehicle manufacturers can give 5 per cent discount for new vehicles bought against scrapped ones.
# Vehicle owners may get higher value for scrapping old ones.
# Vehicle owner will be free to take the old vehicle for scrapping to any centre in the country, irrespective of the place of registration.
# Scrapping centres will keep records, verify ownership of vehicles to be scrapped by using VAHAN database.
# Scrapping centres are not allowed to scrap stolen vehicles.
Vehicles that would be automatically scrapped are: 

a) 15 year plus government & PSU-owned vehicles; 

b) those damaged in fire, riots or any devastation; 

c) declared as defective by manufacturers;

d) those confiscated by enforcement agencies.
Tentative timeline for application of the proposed scrapping policy:

• Rules for fitness tests and scrapping centres will come into effect from October 1, 2021.
• Scrapping of government and PSU vehicles above 15 years of age to be undertaken from April 1, 2022.
• Mandatory fitness testing for heavy commercial vehicles to be in effect from April 1, 2023.
• Mandatory fitness testing for other categories will come into effect in a phased manner from June 1, 2024.

The road transport and highway ministry will publish a draft notification for stakeholders' comments in the next few weeks.
Gadkari said that there are 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, he said, adding that older vehicles pollute the environment 10 to 12 times more than fit vehicles.

 Source : The Times of India