Vehicle Scrappage Policy

Vehicle owners scrapping their old vehicles, could get “strong incentives” including a 25 per cent rebate on road-tax for personal vehicles, and 15 per cent for commercial vehicles, a 5 per cent discount on purchase of new vehicle against the scrapping certificate, among others, Union transport minister Nitin Gadkari said on Thursday.

Gadkari unveiled the much awaited Voluntary Vehicle-Fleet Modernization Program or “Vehicle Scrapping Policy” which is aimed at creating an ecosystem for phasing out of unfit and polluting vehicles, in the Lok-Sabha.

Consumers will also get scrap value for the old vehicle given by the scrapping centre, which is approximately 4-6 per cent of ex-showroom price of a new vehicle. In addition, the registration fees may also be waived for purchase of a new vehicle against the scrapping certificate. The objectives of the policy are to reduce population of old and defective vehicles, achieve reduction in vehicular air pollutants to fulfill India’s climate commitments, improve road and vehicular safety, achieve better fuel efficiency, formalize the currently informal vehicle scrapping industry and boost availability of low-cost raw materials for automotive, steel and electronics industry.

The criteria for a vehicle to be scrapped is primarily based on the fitness of vehicles through Automated Fitness Centres in case of commercial vehicles and Non-Renewal of Registration in case of private vehicles. The Transport and Road Minister Nitin Gadkari also said that the automated fitness testing and scrapping units to come up by October 1.

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