The Union Transport Ministry on October 5, 2021, published a list of incentives and disincentives of the Vehicle Scrapping Policy. The list has been published to promote vehicle owners to abandon their old polluting vehicles that are high maintenance and have a greater fuel consumption co
Union Finance Minister Nirmala Sitharaman had principal stated the Vehicle Scrapping Policy during her budget speech in February 2021. The policy was included to bring transformational changes in the automobile sector by phasing out old, useless and polluting vehicles.
Under the vehicle scrapping policy, all personal vehicles will have to undergo fitness tests in electronic centres after 20 years and commercial vehicles will undergo the test after 15 years.
Vehicle Scrapping Policy Incentive
The Ministry notified that as an incentive of the vehicle scrapping policy, there will be fee reservation for the issue of a certificate of registration for a new vehicle, purchased against the authority of the Certificate of Deposit (CoD) published by a Registered Vehicle Scrapping Facility for a vehicle being abandoned.
Vehicle Scrapping Policy Disincentives
The disincentives of the vehicle scrapping policy include:
- Increase in fee for attending fitness test and renewal of fitness certificate for motor vehicles older than 15 years.
- Increase in fee of fitness certificate for transport vehicles older than 15 years.
- Increase in fee for renewal of registration for personal vehicles (non-transport vehicles) more than 15 years old.
