New schemes to promote vehicle scrapping in India”

In a bid to combat pollution and modernize the vehicular fleet, the Indian government has introduced several new schemes under the Voluntary Vehicle Modernization Program (VVMP), commonly known as the Vehicle Scrapping Policy. This initiative aims to phase out old, polluting vehicles and replace them with newer, more efficient models. The Ministry of Road Transport and Highways (MoRTH) has been at the forefront of this movement, launching various incentives and programs to encourage vehicle owners to scrap their outdated vehicles.

Key Features of the Vehicle Scrapping Policy

The Vehicle Scrapping Policy is designed to create an ecosystem that supports the phasing out of unfit vehicles through a network of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs). As of now, there are over 60 RVSFs in 17 states and union territories, and 75 ATSs in 12 states and UTs.

Incentives for Vehicle Owners

To make the scrapping process more appealing, the government has introduced several incentives:

1. Scrap Value: Owners who choose to scrap their vehicles will receive a scrap value ranging from 4-6% of the ex-showroom price of the vehicle.
2. Road Tax Rebate: A rebate of up to 25% on road tax for non-transport vehicles and up to 15% for transport vehicles.
3. Discounts on New Vehicles: Vehicle manufacturers are offering discounts of up to 5% on new vehicles against a scrapping certificate.
4. No Registration Fees: New vehicles purchased against a scrapping certificate will not attract any registration fees.

Manufacturer Participation

Several major vehicle manufacturers have pledged their support for the policy by offering additional discounts. For instance, commercial vehicle manufacturers like Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors, and SML Isuzu are offering discounts of up to 3% on new cargo vehicles exceeding 3.5 tonnes GVW. Passenger vehicle manufacturers such as Maruti Suzuki, Hyundai, and Toyota are also providing discounts to encourage the scrapping of older vehicles.

Environmental and Economic Benefits

The primary goal of the Vehicle Scrapping Policy is to reduce pollution by removing old, inefficient vehicles from the roads. This initiative is expected to significantly lower emissions, contributing to cleaner air and a healthier environment. Additionally, the policy aims to boost the automotive industry by increasing the demand for new vehicles, thereby stimulating economic growth.

Challenges and Future Prospects

Despite the numerous incentives, the policy has faced challenges in gaining widespread acceptance. Many vehicle owners are hesitant to scrap their old vehicles due to sentimental value or financial constraints. However, the government is optimistic that the enhanced incentives and increased awareness will drive higher participation rates.

Union Minister Nitin Gadkari has emphasized the importance of this initiative in promoting a circular economy and ensuring safer, cleaner, and more efficient vehicles on Indian roads. The government continues to work closely with industry stakeholders to refine and expand the program, aiming for a more sustainable and modern transportation system in India.

Also Read: Tata Motors opens vehicle scrapping facility near Delhi