Vehicle Scrappage Policy: Centre to scrap government vehicles older than 15 years

November 30, 2022
In an effort to rid Indian highways of millions of outdated government vehicles, the Center has produced a draft notification proposing mandatory non-renewal of registration for government vehicles older than 15 years.

Vehicle Scrappage Policy

The Voluntary Vehicle Fleet Modernisation Programme, often known as the vehicle scrappage policy, was launched by Prime Minister Narendra Modi last year. The statement was made during his virtual address at the Gujarat Investor Summit.

The Prime Minister remarked that the scrappage policy will bring in about Rs. 10,000 crore in investments and that Alang in Gujarat might become a car scrapping hotspot.

The summit was also attended by Nitin Gadkari, Minister of Road Transport and Highways. According to him, the scrappage policy is estimated to save roughly 40% on raw material expenses. It would assist India in becoming a car manufacturing hub. He further added that adopting the public-private partnership approach, testing centres will be established in all districts across India.

Commercial cars older than 15 years and personal automobiles older than 20 years are eligible for scrapping under the new vehicle scrappage policy.

Key Details about Policy?

  • According to the policy, the scrap value for old vehicles to be given by the scrapping centre to be approximately 4-6% of ex-showroom price of new vehicle.
  • OEMs to provide 5% discount on the purchase of a new vehicle against the scrapping certificate.
  • State governments to offer road tax rebate of up to 25% for PVs and up to 15% for CVs.

Info Source:  ZeeNews

About the author, Sunderdeep Singh

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