Vehicle Scrappage Policy India: Earlier this year, the Indian government took a monumental step to deal with air pollution by announcing a vehicle scrappage policy. This policy is also expected to deliver a boost to the Indian Automotive industry. This industry is struggling with the decline in sales. Since the covid-19 pandemic, the situation has worsened. Have look at the key provisions of the vehicle scrappage policy.
- Scrapping old vehicles will qualify the vehicle owners to receive an amount equal to 4-6% of the ex-showroom price of the new vehicle they buy. A scrapping certificate will also be given to them.
- In order to boost sales, automakers have to offer discounts of 5% against the vehicle scrapping certificates. This one is advised by the policy.
- The policy also advises the state governments to provide incentives and rebates for scrapping old vehicles, in the form of the waived registration fees, lowered road taxes, etc.
- After 20 years of the date of registration, private vehicles are also required to undergo fitness tests and for commercial vehicles, the period is 15 years.
- The mandatory testing of the personal vehicles will start in a phased manner from June 2024. Whereas for the commercial vehicles, it is expected to be from April 2023.
- At the automatic fitness centers, vehicle fitness tests will be conducted. If the vehicle fails the test then that will be qualified as the ‘end of life vehicle’.
- Ministry of Road Transport and Highways (MoRTH) has also introduced a substantial increase in the RC renewal cost.