Union Minister Nitin Gadkari termed the govt’s vehicle scrapping policy a "win-win" policy that will help improve fuel efficiency and reduce pollution. What’s it is about here’s all you need to know.

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Road Transport and Highways Minister Nitin Gadkari informed the Parliament that the Ministry is introducing a voluntary vehicle fleet modernisation programme, which seeks to create an ecosystem to phase out unfit and polluting vehicles.

He said: “It is proposed that private vehicles be de-registered after 20 years if found unfit or in case of failure to renew registration certificate. As a disincentive measure, increased re-registration fees will be applicable for private vehicles 15 years onward from the date of initial registration. It is being proposed that all government vehicles may be de-registered and scrapped after 15 years from date of registration.”

The criteria will take into account emission tests, braking and safety equipment, among other tests. A vehicle failing the fitness test may be declared as end-of-life vehicle. This was decided after looking into what other countries, like Germany, the UK, the US and Japan, do.

The 'Voluntary Vehicle-Fleet Modernisation Programme' or 'Vehicle Scrapping Policy' will offer a rebate of about 5 per cent to buyers on new car purchases in lieu of scrapping of the old. The scrap value for the old vehicle will be approximately 4-6 per cent of the ex-showroom price of a new vehicle.

He also said that State governments may be advised to offer a road tax rebate and waive registration fees for the purchase of a new vehicle against the scrapping certificate.

With a simplified registration process through a single window, the scrapping facility shall have to comply with environmental and pollution norms and with all applicable Acts.

It shall be ensured that the scrapping centres have an adequate parking facility, de-pollution equipment for air, water and sound pollution and adequate facilities for hazardous waste management and disposal, the minister said.

Well, the minister noted that older vehicles pollute 10-12 times more than fit vehicles and pose a risk to road safety. He said that that commercial vehicles can be deregistered after 15 years, if they fail to get a fitness certificate.

India has 51 lakh light motor vehicles that are older than 20 years and 34 lakh light motor vehicles that are older than 15 years. Around 17 lakh medium and heavy commercial vehicles are older than 15 years without valid fitness certificate.

The Road Ministry has proposed increasing the registration charges for vehicles that are over 15 years from October 1 this year. The draft notification, dated March 15 and published on March 16, has invited comments within a month.

Firstly, the policy could provide a major boost to the Indian automobile sector, which is reeling under the adverse impact of the COVID-19 pandemic. Secondly, the policy can reduce population caused by older and defective vehicles. it will help in achieving better fuel efficiency, formalising the informal vehicle scrapping industry, and boost the availability of low-cost raw materials for the automotive, steel and electronics industry. Finally, it can also improve road and vehicular safety.