Vehicle Scrapping Policy

Mains Marks Booster     5th August 2023        
Samadhaan

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.
Samadhaan