Published on: August 14, 2021


VEHICLE SCRAPPAGE POLICY Files/4800.pdf What is in news : Prime minister formally launched the national vehicle scrapping policy. Features of the policy :

  • The new policy provides for fitness tests after the completion of 20 years in the case of privately owned vehicles and 15 years in the case of commercial vehicles. Any vehicle that fails the fitness test or does not manage renewal of its registration certificate may be declared as an End of Life Vehicle.
  • All government vehicles and those owned by PSUs will be de-registered after 15 years.
  • Mandatory fitness testing for heavy commercial vehicles will start from April 1, 2023, and for all other categories of vehicles, including personal vehicles, it will start in phases from June 1, 2024.
  • Policy includes Central advisories to States to give up to 25% rebate in road tax for personal vehicles and up to 15% rebate for commercial vehicles. The government will also offer waiver of registration fees on the purchase of new vehicles.
  • Central government to issue advisory to auto makers to offer the incentive of a 5% rebate for those who buy a new vehicle after producing a scrapping certificate.
  • Older vehicles pollute the environment 10 to 12 times more. As a disincentive, increased re-registration fees would be applicable for vehicles 15 years or older from the initial date registration.