India’s Scrappage Policy- An Overview
According to MoRTH, the emission from one pre-BS old truck or bus is equivalent to that of 14 new BS-VI trucks or buses. Similarly, one old pre-BS car’s emission is equivalent to that of 11 new BS-VI cars.
India’s Vehicle Scrappage Policy took effect in April 2022. The objective of the government-funded programme is to phase out old passenger and commercial vehicles and thereby reduce urban air pollution, increase passenger and road safety, and stimulate vehicle sales.
The policy requires passenger vehicles older than 20 years and commercial vehicles older than 15 years to pass a “fitness and emissions test” to keep their registration. Vehicles failing the mandatory test are defined as end-of-life vehicles, lose their registration certificate and are recommended to be scrapped. The policy further introduces incentives to scrap old vehicles, including discounts on the purchase of new vehicles against a scrappage certificate.
The vehicles shall be tested by the Automated Testing Stations (ATS). A vehicle shall be recommended for scrapping if found unfit during the fitness test as per the relevant rules for ATS.
To promote ease of registration of Registered Vehicle Scrapping Facility (RVSF) and ATS, a single window clearance system has been developed. All the approvals related to the establishment of RVSF and ATS shall be accorded by the States through this system. The application for registration through the single-window clearance system shall be deemed approved within 60 days, in case of any delay by the State agencies.
Photo courtesy: MORTH
Incentives are:
Ø Scrap Value for the old vehicle given by the scrapping centre, approximately 4-6% of ex-showroom price of a new vehicle.
Ø Registration fees to be waived off for purchase of new vehicle against the certificate of deposit - draft notification issued.
Ø Draft rules notified for state governments to offer concession on motor vehicle tax of
Ø Auto OEMs have been advised to provide 5% discount on purchase of new vehicle against the certificate of deposit.
Approximately, 1.2 crore vehicles without valid fitness and registration will be scrapped including 75 lakh light vehicles and 45 lakh heavy commercial vehicles. It is estimated that the scrapping of the current End-of-life vehicles (ELVs) burden of the country will lead to a 15-20% reduction in emissions due to vehicular pollution.
According to MoRTH, the emission from one pre-BS old truck or bus is equivalent to that of 14 new BS-VI trucks or buses. Similarly, one old pre-BS car’s emission is equivalent to that of 11 new BS-VI cars.
