Addressing the Investor Summit in Gujarat via a video conferencing facility, Prime Minister Narendra Modi today launched the Voluntary Vehicle Fleet Modernization Program or the National Automobile Scrapping Policy. Under this policy, vehicles will not be scrapped solely on the basis of their age, but vehicles will be scientifically tested through authorized automated tests.
Speaking to the investor summit in Gujarat via a video conferencing facility, Prime Minister Narendra Modi launched today Voluntary vehicle fleet modernization program or National Automobile Scrapping Policy.
Under this policy, vehicles will not be scrapped simply on the basis of their age, but vehicles will be scientifically tested by authorized automated test centers, and subsequently unsuitable vehicles will be scrapped scientifically.
This policy aims to ensure that vehicle scrapping facilities registered in all counties are technology-driven and transparent.
The policy was first presented in the 2021 Union budget by Finance Minister Nirmala Sitharaman. Shortly after, Union Minister of Roads, Transport and Highways Nitin Gadkari revealed details of the policy during a Lok Sabha session and notified the new scrapping policy. vehicles.
The policy aims to reduce India’s oil import bills by improving energy efficiency, reducing environmental pollution and improving road and automobile safety by getting rid of old and faulty vehicles, increasing the availability of low cost raw materials like plastic, steel, aluminum, steel, rubber, electronics, etc. for OEMs.
It is important to note that a vehicle should be scrapped at the end of its life cycle so that it no longer drives on the roads and this policy of removing older vehicles will create space for new vehicles. , which will increase sales of the otherwise battered and bruised Indian automobile. industry.
Once the vehicle registration is complete, they will have to pass a compulsory aptitude test. However, vehicle owners can also avail of the scrapping option.
Key points of the Policy
- The policy contains provisions for scrapping private vehicles over 20 years old and commercial vehicles over 15 years old.
- The policy will start with commercial vehicles first, then expand to private vehicles later.
- The criteria for determining the suitability of the vehicle will primarily be emissions testing, braking, safety equipment, among many other tests in accordance with the Central Motor Vehicle Rules, 1989.
- The rules for fitness testing and scrapping centers will apply from October 1, 2021, while the scrapping of government vehicles and power pack over 15 years old will come into effect at from April 1, 2022.
- Old vehicles must pass an aptitude test before being re-registered and these tests would take place in automated fitness centers and the vehicle aptitude test will be carried out in accordance with international standards.
- Aptitude tests would be mandatory after 20 years for personal vehicles, while commercial vehicles would require it after 15 years.
- The compulsory aptitude tests for heavy commercial vehicles will be in force from April 1, 2023, and the same will be phased in for the other categories from June 1, 2024.
- Increased costs for the certificate of competence and the test will apply to commercial vehicles from the age of 15 from the date of initial registration and in the event of failure to obtain the certificate of competence, these vehicles will be deregistered.
- Increase in re-registration fees applicable to private vehicles from 15 years from the date of initial registration. These vehicles must be canceled after 20 years if they are deemed unfit or in the event of non-renewal of the registration certificate.
- A vehicle which fails the aptitude test or which does not obtain the renewal of its registration certificate to be declared as “End of life vehicle”
Services to be received after scrapping the vehicle
Under the new policy, a certificate will be issued on the scrapping of old cars, which will guarantee owners a reduction on the purchase of new cars and service charges. Some of the advantages are as follows: –
- A scrap value of the vehicle’s ex-showroom price ranging from 4 to 6% will be given to the owner if he chooses to scrap the vehicle
- A discount of up to 25% will be granted on road tax
- Car manufacturers will be asked to give a 5% discount on new vehicles against a scrapping certificate
- No registration fees for vehicles.