Launching the ‘Vehicle Scraping Policy’, the PM said that ‘Vehicle Scraping’ will help in the phased removal of unsuitable and polluting vehicles in an environment friendly manner. Will play an important role in the program ‘Barbadi Se Samridhi’.
Vehicle scrapping will help phase out unfit & polluting vehicles in an environment friendly manner. Our aim is to create a viable #circulareconomy & bring value for all stakeholders while being environmentally responsible.
— Narendra Modi (@narendramodi) August 13, 2021
He said that this policy will reduce the pressure of modernity in traffic, travel and transport and will prove helpful for economic development. The PM said that our goal is to give value to all the stakeholders while fulfilling our responsibility towards the environment and create a ‘viable circular economy’.
Why has this policy been brought?
The government aims to reduce air pollution and vehicular pressure on the roads by removing old vehicles from the roads. Gadkari had told that there are 51 lakh light motor vehicles in India which are more than 20 years old and 34 lakh light motor vehicles which are more than 15 years old. There are around 17 lakh medium and heavy commercial vehicles which are more than 15 years old without valid fitness certificate. Old vehicles pollute the environment 10 to 12 times more than fitted vehicles and pose a huge risk to road safety.
To meet the fuel needs of the country from above, crude oil worth about 8 lakh crores is imported, which not only puts pressure on the economic condition of the country but also causes excessive pollution due to old emission technology of old vehicles. In such a situation, to improve this situation, the government has made a policy to scrap the vehicles that do not meet the conditions of the policy.
What will be the benefits?
The scrap material that will be prepared due to scrapping will provide raw material to the automobile industry at a cheap price, it will reduce the cost of making vehicles. Such things will also be obtained from scrap material, which will be useful in the research of battery of electric vehicles.
The owner of the vehicle will get about 4 to 6 percent of the scrap value of the vehicle and will also get a scrapping certificate. There will also be a discount of 5 percent for buying a new vehicle on the basis of scrapping-certificate and a huge discount in registration fee and road tax.
Automobile sector employs about 3.7 crore people directly and indirectly and has a total turnover of 7.2 lakh crores. With the implementation of the scrapping policy, not only will these figures increase, but due to scrapping centres, automatic fitness centers, an additional investment of Rs.10,000 crores will be made and 35,000 people will get direct employment in sectors like allied service sector, RaD.
How will the policy work?
If a vehicle fails the fitness test or fails to renew its registration/certificate, it will be declared an end of life vehicle. The fitness of the vehicles, especially—emissions, tests, braking, safety equipment among many other tests—will be measured in accordance with the parameters of the Central Motor Vehicles Rules, 1989.
If a private vehicle is found unfit after 20 years or fails to renew the certificate of registration, it will be compulsorily de-registered. As a measure to prevent this from being promoted, the increased re-registration fee for certificate of fitness will be applicable for private vehicles up to 15 years of age from the date of primary registration.
All government vehicles will be compulsorily de-registered and scrapped after 15 years from the date of registration.