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    Vehicle Scrapping Policy

    All vehicles owned by central and state governments older than 15 years will be de-registered and scrapped starting April 1 2023.

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    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

    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.
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