Vehicle scrappage programs have been around since the global recession that began in the year 2008. Governments in association with vehicle manufacturers from across the globe have been implementing car scrapping policy to ensure an increase in sales of new vehicles as well as the removal of inefficient vehicles from the roads.
India in this view is working on a vehicle scrapping draft policy for the past 4 years. Given the drastic downfall in the automobile sector, this year along with rising emission levels from old near-scrap vehicles has called for immediate implementation of the scrappage policy at the latest.
What is Vehicle Scrapping Policy?
To curb pollution and battle the slowdown in the automobile sector, the Government of India has proposed and funded a car scrapping policy. This policy aims at replacing old vehicles from Indian roads. Once a vehicle’s registration certificate expires beyond its operational limit, a user can go to any government-authorised scrapping centre and surrender the vehicle.
What are the benefits of Vehicle Scrapping Policy in India?
A vehicle scrapping policy implementation in India will have many positive outcomes:
- First and foremost benefit is cleaner air. As inefficient vehicles will be taken off the roads, the air pollution levels will decrease.
- Vehicle scrapping will ensure removal of old vehicles and an increase in sales of new vehicles in India.
- With the increased sale of new vehicles with advanced safety features, commuting on Indian roads will become a lot safer.
- The government is setting up authorised vehicle scrapping facilities, this will in-turn generate huge employment opportunities in India.
- Vehicle scrapping will be a major breakthrough for the raw and precious metal recycling industry in India.
What will a car owner get in return for scrapping his old vehicle?
One would say that the scrap returns on his or her vehicle will be mere nothing as compared to the actual value as well as the emotional value Here’s what a car owner will get:
- The scrap rate of the vehicle’s metal part at a rate which will be predefined by the policymakers.
- The market rate of the working or usable parts of your vehicle. For e.g., If your vehicle has 4 tyres in good condition, the dealer will sell them in the market. Try to get as much as possible from such parts.
- If a car owner scraps his old vehicle they will stand eligible for tax rebates and a proposed discount of up to 15% on the purchase of a new vehicle.
The Society of Automobile Manufacturing (SIAM) has recommended the government to provide incentives in any possible form to the car owners who decide to scrap their 15-year old vehicle.
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How can I scrap my car in India?
Will it be hassle-free or do I need to visit and the scrapping yard again and again? No one loves tareekh pe tareekh!
Well, to make the process hassle-free, MSTC which is a Government of India enterprise, has partnered with Mahindra Accelo to ensure proper scrapping of a vehicle under the vehicle scrapping policy.
Following are the steps to be followed in order to get your vehicle scrapped:
- To scrap your old car, a car owner will need to visit an authorised car scrapping dealer who will inspect and evaluate your vehicle for scrapping.
- The owner will have to provide a photocopy of your car’s registration certificate.
- The scrap dealer will then ensure that the vehicle is eligible for scrapping as per law.
- The dealer will evaluate and segregate the vehicle into different categories such as metal, rubber, plastics etc.
- Upon evaluation, the dealer will quote a price according to the material which can be resold or scrapped from your car. Like car tyres which can be resold and reused.
- The working parts of the vehicle can be sold by the dealer for which the owner can demand the best price possible.
- The scrap dealer will issue a “certificate of destruction” against your vehicle.
- The chassis number will be cut out from the vehicle’s chassis before car scrapping. This has to be submitted to the RTO while surrendering the RC.
- Finally, it is advised for the owner to take some photos of the vehicle making sure the vehicle is scrapped and not used illegally.
Although the car scrapping in India is not YET regularised by the RTO, once the policy comes into play, owners will have no problem in getting their car scrapped.
What are the RTO rules for car scrapping and deregistering old cars?
There are some very simple steps to carry out car scrapping:
- The car owner needs to write a letter to authorized RTO stating the intent to scrap the vehicle.
- The owner needs to surrender the registration certificate as well as the chassis number that was cut out of the chassis during scrapping.
- The owner will also have to submit an affidavit stating that the vehicle is not under any loans, insurance claims, or pending case court. It should also state that the vehicle is not involved in any criminal activity such as theft.
- The insurance company also needs to be notified about the car scrapping.
- After this, the RTO will verify the documents and receive a diligence report or a no-objection certificate from the police and the National Crime Records Bureau (NCRB). If all the documents are found in accordance with the norms stated in the vehicle scrapping policy, the vehicle will be deregistered by the RTO.
How is a car evaluated for scrapping in India?
- If the registration certificate of a vehicle has expired, then vehicle scrapping is deemed possible.
- Scrapping may also be done for vehicles that do not meet the minimum requirements of emissions.
- Further guidelines will be available as soon as the draft is released.
What if you want to get your vehicle re-registered in another state?
You may get your vehicle re-registered in another state other than Delhi-NCR. But among several other provisions, the government is also planning to increase the re-registration fees by 25 times (i.e ₹600 to ₹15,000).
Furthermore, the re-registration fees for commercial four-wheeler vehicle will be ₹20,000 from ₹1,000 now. So for just five years of increased validity, you will have to pay more and not to forget the environmental loss caused.
Why does India need a Vehicle Scrapping Policy?
- Vehicle recycling is a highly unorganized sector in India with very few big players. This vehicle scrapping policy will ensure hassle-free scrapping of used vehicles. It will also bring huge employment opportunities.
- It will also help the metal recycling industry the long-awaited breakthrough. The organisation of the car scrapping industry will lead to a decrease in pollution caused by the scrap as the scrap will be recycled properly or will be disposed of properly as stated by the notification from the authorities.
- Many old vehicles plying on the Indian roads are unsafe for the passengers as well as the vulnerable pedestrians.
- The basic features such as Anti-lock Braking System or ABS, which comes as a standard feature nowadays was not standard before 2015 in plenty of non-premium cars. This lack of features makes accidents on the Indian roads one of the major reasons for deaths yearly.
- Currently, this process is voluntary and thus depends solely upon the will of the owner. It will be a tough call for people who really love their cars.
- But this is a small price one needs to pay for salvation. To ensure a better future, pollution needs to be curbed, which can only be ensured by strict action on the pollution causing vehicles.
- The mere implementation of BS6 norms won’t help in the reduction of the pollution being caused by the already inefficient vehicles on the roads. The industry will also be revived when there is an increased demand for new vehicles in the market.
- Thus the car scrapping policy will act as a boon for the slump ridden industry as well as ensure some improvements in the environment.
- The government needs to ensure that the process of scrapping is smooth and the scrap does not harm the environment in any way.
- The road ahead for the car scrapping policy is bumpy but it is inevitable or at least we feel it that way to ensure a future of sustainable living.
And for those vehicles which still have time before expiration, get your vehicle serviced by the professionals at GoMechanic at an affordable cost.