Our Honourable Prime Minister, Narendra Modi, launched the much-awaited National Automobile Scrappage Policy and stated that the following initiative will help in promoting a circular economy and thus, in turn, will help in making the technique of economic development more endurable and environment friendly. According to the Prime Minister, this policy will give an unique outlook to the automobile sector of the country. Moreover, he said that modernity in mobility helps in reducing the burden that comes with the travel and transportation industry, but it has also proven to be of much help for economic development. The objective of 21st century India is to become a clean and congestion-free country with convenient mobility.
The following scrappage policy is all about scraping out old and unfit vehicles which pollute the environment. This can be done by creating a certain kind of infrastructure that can automatically test the vehicles that has completed the particular registration period. As per the existing law, the certificate of a registered vehicle of an owner is valid; only up to 15 years from the date of the issue. In the case of a commercial vehicle, this tenure is reduced to that of 10 years. A particular vehicle will have to undergo and mandatory fitness test after the expiry date. The fitness test allows the authorities to know about the quality of the vehicle and to determine; if it is still fit to be done on the roads and if it does and how much will it affect our environment.
What is under Scrappage Policy?
Under the new scrappage policy and force by the government cars will not only be described based on their age. There will be scientifically tested by authorized automated testing centres. Various tests like the Brake test, engine performance, and others will be performed and if the vehicle passes the fitness tests. It will have to repeat the same test, after every 5 years to keep itself in check.
The vehicles that will be found unfit for running in the streets, will be scrapped off in a scientific manner; it will be ensured that all the registered vehicle scrapping facilities available in the country are fully Technology-driven and utterly transparent. The vehicles that will be classified as unfit; will fall under the category of those which have been damaged due to some fire break out. A natural disaster or any kind of riot or accident, or any other kind of man-made or natural calamity. There are even some vehicles that are declared obsolete, which cannot be repaired properly; or have outlived their usable period — such vehicles will also fall under the following category of unfit. It is a voluntary scheme and the owners are provided with the right to scrap their vehicles.
There are certain incentives such as the owners will get 4% value as compared to the ex-showroom price; there will be zero registration fees and the state governments have been asked to make concessions on motor vehicle tax. Also, the manufacturers of the vehicles have been told to provide a 5% discount over the purchase of any new vehicles; against the certificate of the deposited one.
The following policy will come into action as the personal vehicles which are older than twenty years will become reregistered from June 1, 2024; or once they fail the automated fitness test.