Vehicle scrapping policy News

Nitin Gadkari said the automakers should work towards ramping up their production capacity and support the country to become the largest auto industry in the world.

The policy from the Central government comes in an effort to decongest roads by scrapping buses and vehicles with the plans of establishing three registered vehicle scrapping facility, reports IANS.

In the Vehicle Scrapping Policy, it is proposed to have a system of incentives and disincentives to nudge vehicle owners to discard old and polluting vehicles, which have higher maintenance and fuel consumption costs.        

Fees for conducting fitness tests and renewing fitness certificates for motor vehicles older than 15 years have been raised. An increase in the charge for certifying the fitness of transport vehicles older than 15 years. Renewal fees for personal automobiles (non-transport vehicles) older than 15 years have been raised.

10-year old diesel vehicles need to be scrapped 15-year-old petrol vehicles will be scrapped too

The Prime Minister believes that the event opens a new range of possibilities and urged the youth and start-ups to join this programme. The aim of the Summit was to invite investment for setting up vehicle scrapping infrastructure.

The voluntary vehicle scrapping policy announced in the Union Budget for 2021-22 provides for fitness test after 20 years for personal vehicles while commercial vehicles would require it after the completion of 15 years. Automated fitness tests will be set up under public private partnership (PPP) mode while the government will assist private partners and state governments for scrapping centres, he said. This policy is going to be a boon for the automobile sector, making it one of the most profitable sectors which in turn would generate huge employment, the minister said.

Road Transport and Highways Minister Nitin Gadkari on Tuesday said it will soon seek the Union Cabinet's nod for the proposed vehicle scrapping policy.

The draft vehicle scrapping policy would offer a combined benefit of Rs 14,000 crore to the Centre and states and drive the auto industry growth by 22 percent, Union Minister Nitin Gadkari said Tuesday.