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Vehicle Scrapping Policy

Vehicle Scrapping Policy:

The Union Road and Transport Minister announced the Vehicle Scrapping Policy in the Lok Sabha.

  • It was first announced in the Union Budget for 2021-22.
  • The policy is estimated to cover 51 lakh Light Motor Vehicles (LMVs) that are above 20 years of age and another 34 lakh LMVs above 15 years of age.
  • India will also implement a Global Positioning System (GPS)-based toll collection system and do away with all toll booths within a year.
  • Aim: Reducing the population of old and defective vehicles, bringing down vehicular air pollutants, improving road and vehicular safety.

Provisions:

Fitness Test:

  • Old vehicles will have to pass a fitness test before re-registration and as per the policy government commercial vehicles more than 15 years old and private vehicles which are over 20 years old will be scrapped.
  • Old vehicles will be tested at the Automated Fitness Center and the fitness test of the vehicles will be conducted according to international standards.
  • Emission test, braking system, safety components will be tested and the vehicles which fail in the fitness test will be scraped.
  • The Ministry has also issued rules for the registration procedures for scrapping facilities, their powers, and scrapping procedures to be followed.

Road Tax Rebate:

  • The state governments may be advised to offer a road-tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles to provide an incentive to owners of old vehicles to scrap old and unfit vehicles

Vehicle Discount:

  • Vehicle manufacturers will also give a discount of 5% to people who will produce the ‘Scrapping Certificate’ and registration fees will be waived off on the purchase of a new vehicle.

Disincentive:

  • As a disincentive, increased re-registration fees would be applicable for vehicles 15 years or older from the initial date of registration.

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