Hon’ble Prime Minister Sh Narendra Modi has finally launched the Vehicle Scrappage Policy in India. The PM launched the policy at an investor’s summit in Gujarat.
Commenting on the same, PM Modi tweeted:
The launch of Vehicle Scrappage Policy today is a significant milestone in India’s development journey. The Investor Summit in Gujarat for setting up vehicle scrapping infrastructure opens a new range of possibilities. I would request our youth & start-ups to join this programme.
— Narendra Modi (@narendramodi) August 13, 2021
He further added that the Vehicle Scrapping Policy will help phase out unfit and polluting vehicles in an environment-friendly manner.
Vehicle scrapping will help phase out unfit & polluting vehicles in an environment friendly manner. Our aim is to create a viable #circulareconomy & bring value for all stakeholders while being environmentally responsible.
— Narendra Modi (@narendramodi) August 13, 2021
What is the Vehicle Scrapping Policy?
Simply put, the vehicle scrapping policy aims to pull old, unfit and polluting vehicles off the roads and put them through scrapping.
- According to the motor vehicle law, an RC (Registration Certificate) for a passenger vehicle is valid for 15 years whereas, for a commercial vehicle this validity is for 10 years only.
- Now, this scrappage policy will be applicable after the RC of passenger and commercial vehicles expires (10 and 15 years respectively).
- Such vehicles then have to undergo a vehicle fitness test.
It is to note that, a fitness certificate renewal will be required annually for commercial vehicles that are older than eight years.
When will the Vehicle Scrapping Policy come into effect?
As per the policy, personal vehicles older than 20 years, that have failed their fitness test or RC renewal will be de-registered from 1st June 2024.
The vehicle scrappage policy implementation for commercial vehicles will begin starting 1st April 2023
What kind of vehicle will be put through scrapping?
It is to note that vehicles meant for scrapping will not only be judged on the basis of age but will be put through a series of fitness tests at government standardised automated testing centres.
- Such unfit vehicles can include; vehicles involved in natural disasters (like floods, fires, natural calamities), accidents that have compromised the vehicle structural integrity, vehicles involved in riots, vehicles that have become obsolete etc.
- These vehicles will be declared “Unfit” and their RC will stand cancelled.
- The Government will still permit 1 re-test given that the vehicle has undergone any repair or service ordered by the authority. However, If the vehicle still fails the re-test, it will be declared an ELV or End Of Life Vehicle.
Please note that the Vehicle Scrappage Policy is a voluntary scheme
What is the Vehicle Fitness Test?
As per The Motor Vehicles Act, 1989, the registration of the vehicle is considered valid only if the vehicle has a valid and effective vehicle fitness certificate. As the name says, the vehicle fitness test is a set of parameters that decide if the said vehicle is non-polluting and fit to run on the roads. These tests include brake test, engine performance and emissions test and more.
A valid fitness test will be deemed necessary for any vehicle that seeks RC renewal after 15 years. This fitness certificate will be valid for 5 years. Moreover, the vehicle has to undergo a consequent fitness test every 5 years.
Incentives On Scrapping Your Old Car
The Government has declared that it will be incentivizing the voluntary vehicle scrappage policy.
- Owners of unfit vehicles who wish to scrap them will be compensated with a scrap value equivalent to 4% to 6% of the ex-showroom price of the new vehicle they would be buying.
- No registration fees will be levied on the purchase of a new vehicle, only if the owner produces a Certificate Of Deposit.
- The Centre has asked the State Government to offer concessions on road tax which can be up to 25% for non-transport vehicles and up to 15% for transport vehicles.
- The Center has also asked vehicle manufacturers to offer a 5% discount on the purchase of the new vehicle is provided with a Certificate Of Deposit.
What If You Don’t Scrap Your Old Car?
If you still decide to hold on to your old car after 15 years, be ready to pay up to 62X (commercial vehicles) for the renewal of the fitness certificate. (8X for private vehicles).
Moreover, the states will also charge a mandatory Green Tax that will be applicable over the road tax.
So, what are your thoughts on the new Vehicle Scrapping Policy in India. Will it help boost the economy and well the environment. Comment your thoughts below.
Bull shit it’s not correct. What will do the medium class people like us who r living with this vehicle and have no loan. This means v have to take again loan for new vehicle and die again. We have no rights to leave in india only big people can leave so.This is very corrupt political game .How much the company’s have given them for this god know. Only god can save us this is good times in india bringing all the people to road side great👌👍
Congratulations to the government for this new scrapping policy or else reapplying for registration.As it happened in
Pollution policy nobody was checking the pollution level of vehicle but just collecting amount and giving the certificate even to vehicles emitting black smoke.The idea of this new registration is to loot the public and nothing else.
Has it been implemented , because i have a fit 2009 ford fiesta diesel and police in delhi had caught it. I have valid puc , insurance etc still.
Diesel highly polluting. Stand behind when running engine full throttle and see black smoke. As though trucks were clean that businessmen brought out 4 wheelers running on the cruder fuel. Obviously subsidised fuel, costing 2/3 petrol price, 1/2 if one considers higher mileage, became the cause people purchased diesel cars.
Scrappage policy benefiting car manufacturers only! Same 4 wheeler costs 7 times the price, this would be sold at! If after 15 years my vehicle has run just 55000 kms, runs cleanly, on petrol, runs smoothly, why must have it scrapped! Abroad, say Canada, one may run ones cars 40 years if clean! You believe we citizens have more money than Canada’s denizens?! No scope left when such laws get passed. Law enforcers mechanically follow them, causing citzens’ harrassment. Will the person doing enforcement see that the exhause coming out completely clean, when registry shows 14 years age? No! He’ll only eye the beneficial penalty! Shame on government who playing with rich capitalists! Punish polluters. Spare honest bonafide people.