What is the vehicle scrappage policy proposed by the government?

Transport Minister Nitin Gadkari on Thursday detailed the proposed vehicle scrappage policy that provides for fitness test after 20 years for personal vehicles and for commercial vehicles on completion of 15 years.

The voluntary vehicle scrapping policy was first announced in the Union Budget for 2021-22 and will be implemented in a calibrated manner starting 2022 on select vehicles.

Vehicles failing to pass the fitness test will be de-registered. To discourage people from running old vehicles, the re-registration fees will be increased.

As per the policy, Registered scrapping centres would provide scrap value equivalent to 4-6% of the ex-showroom price of the new vehicle.

State governments will be advised to offer a road tax rebate of up to 25 percent for a personal vehicle and 15 percent for commercial vehicles.Waiver of registration fees for the purchased vehicle.

Also,  raw materials like plastic, aluminium, steel,copper, would be recycled and will become a lesser cost component for the automotive industry.

Here are the tentative timelines:

October 1, 2021: Rules for fitness tests and scrapping centres to come into effect.

April 1, 2022: Scrapping of government and PSU vehicles above 15 years of age to start.

April 1, 2023: Mandatory fitness testing for heavy commercial vehicles to commence.

June 1, 2024: Mandatory fitness testing for other category vehicles to start in a phased manner.