What is Vehicle Scraping Policy? Know its purpose and provisions in Details

What is Vehicle Scraping Policy? You will be given full details of its purpose and provisions here. (Read in hindi)

The Vehicle Scraping Policy was announced in the Lok Sabha by the Union Road and Transport Minister. This policy was first announced in the Union Budget 2021-22. 51 lakhs older than 20 years and 34 lakhs Light Motor Vehicles (LMVs) above 15 years have been covered under this policy. India will also implement Global Positioning System (GPS) based toll collection system and all toll booths will be closed within a year.

What is Vehicle Scraping Policy?  Know its purpose and provisions in full


Table of contents (toc)

Vehicle Scraping Policy Purpose

Reducing air pollutants by reducing old and worn vehicles, improving road and vehicular safety.

Provisions under Vehicle Scraping Policy

Fitness test: Commercial vehicles older than 15 years and private vehicles older than 20 years will have to pass a fitness test before re-registration. Old vehicles will be tested in the Automated Fitness Center, where the fitness test of the vehicles will be done as per the international standards. In these fitness centres, the vehicles will be subjected to emission testing, braking system, safety components etc. and vehicles failing this test will be cancelled.  The ministry has also issued rules to eliminate facilities for the registration process.

Road tax exemption: State governments have been advised to provide road tax exemption of up to 25% for private vehicles and up to 15% for commercial vehicles to encourage owners of old vehicles to remove old and unsuitable vehicles.

Vehicle discount: Those who produce a 'scraping certificate' by the vehicle manufacturers will be given a 5% discount on the purchase of a new vehicle, as well as a waiver of registration fee for the new vehicle.

To discourage: The use of such vehicles will be discouraged by increasing the re-registration fee for vehicles of 15 years or more age.

Importance of Vehicle Scraping Policy

  • Creation of scrap yards: This will help to create more scrap yards in the country and effectively deal with the waste of old vehicles.
  • Employment: The new fitness centers will provide employment to around 35,000 people and will attract an investment of Rs 10,000 crore.
  • Improvement in revenue: This will boost the sales of heavy and medium commercial vehicles which were in economic slowdown due to the circumstances arising out of the IL&FS crisis and the COVID-19 pandemic.
  • This policy is expected to bring about Rs 30,000 to 40,000 crore to the exchequer through the Goods and Services Tax (GST).
  • Reduction in prices: Recycling of metals and plastics obtained from used vehicles will bring down the prices of auto components to a great extent.
  • Due to cheaper scrap material, the cost of production of the automakers will be reduced.
  • Pollution reduction: This will help in improving fuel efficiency and reducing pollution. Old vehicles pollute the environment 10 to 12 times more than new vehicles. According to an estimate, at present there are about 17 lakh medium and heavy commercial vehicles which are more than 15 years old.

Other initiatives to curb vehicular pollution

  • Go Electric Campaign.
  • Fame India Scheme Phase II.
  • Electric Vehicle Policy for Delhi, 2020.
  • Hydrogen fuel cell based bus and car project.
  • National Electric Mobility Mission, 2020

Various Info Conclusion

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