All you need to know about the Vehicle Scrappage Policy launched by PM Modi

PM Modi launched the much-talked-about vehicle scrappage policy. According to the PM, the new policy will aid in phasing out the unfit and polluting vehicles. Which will improve and promote the circular economy.

PM Modi urged the youth and the start-ups to join in this initiative, which will provide a new identity to the mobility and automobile sector in the country.

The vehicle scrappage policy will play a dominant role in modernizing the vehicle population on our roads and will also ensure in reducing pollution in the cities.

Let us have a look at the key features of the policy.

• For old vehicle; you will get the scrape value from the scrapping center. The estimated scrape value will be around 4 to 6 percent of the ex-showroom price of the new vehicle brought.
• Under the scheme, the owners of the old vehicles who will scrap their unfit vehicles will get incentives.
• A scrapping certificate will be provided to the owner of the unfit vehicle.
• The scrappage policy also advises giving a road-tax rebate of up to 25% for personal vehicles. Whereas up to 15% rebate for commercial vehicles.
• Furthermore, the policy also advises the automobile manufacturers to provide an additional discount of 5 percent on the purchase of a new vehicle against the scrapping certificate.
• As per the policy the private vehicles to be de-registered after 20 years if found unfit. Or also in the case of a failure to renew the registration certificate. A disincentive measure will incorporate an increase in re-registration fees for private vehicles having an initial date of registration 15 years back. And for commercial vehicles, the re-registration process will start after 15 years if found unfit.
• The registration fees may also be waived for the purchase of a new vehicle against a scrapping certificate.

Moreover, mandatory fitness testing for commercial vehicles will start on April 1, 2023. Whereas for personal vehicles fitness testing will start on June 1, 2024, in a phased manner.

Earlier this year, the Ministry of Road Transport and Highways (MoRTH) introduced a draft notification. The notification proposed a hike in the renewal fees of the RC of a 15-year-old vehicle.

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