Vehicle Scrapping Policy

Introduction

• All vehicles owned by central and state governments older than 15 years will be de-registered and scrapped starting April 1 2023.
• The Ministry of Road Transport & Highways has announced this through a notification.
• Special purpose vehicles used for defense and law enforcement are exempted from this rule.
• The vehicles should be disposed of through a Registered Vehicle Scrapping Facility after 15 years from the initial registration.
• The Union Budget 2021-22 announced the policy, which includes fitness tests after 20 years for personal vehicles and 15 years for commercial vehicles.
• States and Union Territories will provide up to 25% tax rebate on road tax for new vehicles purchased after scrapping old vehicles.

Categorization of vehicles concerning scrappage

• Government Vehicles

• The Scrappage Policy for government vehicles was approved in January 2021.
• Vehicles owned by the Centre and State Government that are more than 15 years old will be scrapped from April 1, 2022.

• Commercial Vehicles

• Commercial vehicles used for transportation purposes will need to undergo a fitness test after 15 years.
• If considered unfit, the vehicle will be scrapped according to the commercial vehicle scrap policy rules.

• Private Vehicles

• Private vehicles used for commuting will need to undergo a fitness test after 15 years.

• Vintage Vehicles

• Vintage cars and bikes, although older, will be considered separately based on their condition regarding scrapping directives.

Fitness Tests for Vehicles

• Similar to the Pollution Under Control (PUC) test, vehicles will need to undergo an automated Fitness Test after 15 years for private vehicles.
• The test's validity will be five years, and it will cost around Rs. 40,000.
• A Green Cess will also be charged, varying by location.

Need for introduction of vehicle scrappage policy

• Rise in demand for new cars:
• Incentives for Vehicle owners
• Employment growth
• Safer vehicles:
• More recycling & better air quality
• Best price for scrap

Challenges

• Entire onus on State Governments, Funding support, BS 6 transition for heavy-duty vehicles, Replacement with electric vehicles, Infrastructure, De-registering vehicles

Way Forward

• The scrappage policy can contribute to the government's target of electrifying 30-40% of the vehicle fleet by 2030.
• A comprehensive plan is needed to remove end-of-life vehicles from the road and support freight transporters financially.
• The benefits of implementing BSVI vehicles can only be fully realized when old fleet vehicles are taken off the road.
• Adequate support for electric vehicles, including infrastructure development, is crucial for sustainability.
• The scrappage scheme should incentivize the replacement of old vehicles with electric vehicles and discourage the purchase of traditional petroleum-powered vehicles.

Conclusion

• Ecological scrapping aims to recover materials, reduce air pollution, and promote green technologies.
• Vehicle scrappage can stimulate economies and support the transition to electric vehicles.
• It aligns with the goal of achieving net zero emissions by mid-century and supports India's complex automobile ecosystem.