New Delhi: India introduced a scrappage policy for old and unsafe vehicles in 2021. The policy was declared by the Finance Minister Nirmala Sitaraman in the Union Budget 2021. Later, on March 18, 2021, Minister for Road Transport and Highways, Nitin Gadkari, announced the extensive insights about the scheme. This was a step forward for green India and to curb urban Pollution. The policy aims to phase out the vehicles which are more than 15-20 years old and to encourage purchase of new ones.
The scheme will chip in for organizing the scattered and nebulous vehicle scrappage methods. It is also expected to boost the slow automotive sales post Covid’19. Several other countries have already implemented this policy, making India fall behind them.
The following questions and answers give all that you need to know about the Voluntary Vehicle- Fleet Modernization Programme.
Q. What is India’s Vehicle Scrappage Policy?
A. The policy states that commercial vehicles which are more than 15 years old and passenger vehicles more than 20 years old have to undergo the fitness and emission test. The policy checks the quality of brakes, engine performance and several other factors, after which it is decided whether the vehicle is scrap or not. As per the policy, automated testing stations and vehicle scrapping provisions will be established in phases.
Q. What is the aim of the Vehicle Scrappage Policy?
A. The aim of this policy is to: –
1.Curb the pollution by scrapping 1 crore vehicles without any eligible fitness and registration.
2.Improve vehicular safety.
3.Enhance the fuel efficiency and minimize maintenance cost for vehicle owners.
4.Improve auto sector sales and promote employment opportunities.
5.Boost the availability of low-cost materials for steel, electronics and automotive industry.
Q. What are the incentives provided for the scrapping of old vehicles?
A. The government has offered incentives to scrap old vehicles and to buy new ones. They include:-
1.The auto manufacturers can provide up to 5% discount for purchasing new vehicles.
2.The buyer gets a registration fee waiver for new vehicle purchase.
3.The vehicle owners can be provided with scrap value equivalent to 4-6% of the ex-showroom price of the new vehicle.
4.The state can provide up to 25% and 15% refund of road tax for personal and commercial vehicles, respectively.
Q. What is a Vehicle Fitness Test and What will happen if any vehicle fails in the test?
A. Registration of all the vehicles is related to the fitness certificate. CVs have to undergo the fitness test after every 2 years for the first 8 years and annually afterwards. For PV the first registration is valid for 15 years and the renewal is valid for 5 years.
From April 1, 2023 the Fitness Test for CV is proposed to be made mandatory through Automated Testing Stations (ATS) only. While for all other CVs, and PVs, fitness testing through ATS is proposed to be mandatory from June 1, 2024.
If a vehicle fails to pass the Vehicle Fitness Test or Automated Fitness Test, one retest provision is available after the necessary repair and re-inspection. This is valid if the orders are received from an Appellate Authority.
Q. What is the recommendation from the Society of Indian Automobile Manufacturers (SIAM)?
A. SIAM has requested the government to permit the dealer workshops to function as certification and inspection stations. This was recommended as establishing new ones may delay the whole process of implementation and policy developments.
Q. How to determine the value of your vehicle?
A. The price of the vehicle will be based on the weight of the vehicle to be scrapped. It is normally INR 15 per kg of metal parts. It is more beneficial for the seller if the vehicle is in working condition as he/she can sell the vehicle parts and get a higher price for the vehicle.
Q. Which documents do you need to submit while scrapping your vehicle?
A. To scrap your vehicle at the authorized scrapper, you first have to submit a photocopy of RC, fitness certificate which determines your car is unfit, Bank Account Details(where you want the amount to be deposited), PAN Cards, crossed cheque of the same account, and a proof of being the car owner. If the vehicle owner is dead then submit the death certificate of the owner.
Q. Which other countries have introduced Vehicle Scrappage Policy?
A. The United States, Germany, Canada, and China are some of the countries which have introduced Vehicle Scrapping Policy to boost their automotive industry.
