Things to know about Vehicle Scrappage Policy | Fusion - WeRIndia

Things to know about Vehicle Scrappage Policy

Things to know about Vehicle Scrappage Policy

To control pollution, the central government wants to introduce a vehicle scrappage policy. Union Road Transport and Highways Minister Nitin Gadkari yesterday announced the plan and other details of the policy in Lok Sabha.

While announcing the policy, the minister said that the policy intends to control pollution. It also helps boost the economy by replacing old vehicles with newer ones. Gadkari said that the policy would be notified in the coming months.

Here are some important things about Vehicle Scrappage Policy:

  • The vehicle scrappage policy says that the vehicle shall be scrapped after the end of its life cycle. The age is 15 years for commercial vehicles and 20 years for personal vehicles. In other words, commercial and personal vehicles shall be scrapped after 15 and 20 years.
  • Every vehicle has to go mandatory fitness test after the end of registration of the vehicle. It has to pass the fitness test. If it fails the test, then, its life is ended and the vehicle is scrapped.
  • The government wants to increase re-registration fees for the renewal of registration so that people would avoid renewal and opt for new vehicles.
  • Besides, the government also proposed to impose green taxes and other charges on old vehicles to discourage their use after the end of their life.
  • If the owners decide to scrap the vehicle, they will be given a scrap value of a certain amount in the ex-showroom price. Though the value is not yet decided, it is likely to be in the range of 4 to 6 per cent.
  • In addition to that, they will be given a rebate of up to 25 per cent in Road Tax.
  • Furthermore, if vehicle owners provide a scrapping certificate, they will be given an additional 5 per cent discount on new vehicles.
  • Thus, the government wants to provide a benefit of up to 10 to 15 per cent on the old vehicles at the end of their life cycle. This move would lure the vehicle owners to prefer buying new vehicles rather than renewing old vehicles.
  • To simplify the scraping process, automated fitness centres will be established across the country.

Image by OpenClipart-Vectors from Pixabay (Free for commercial use)

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