PM Modi Launches Vehicle Scrappage Policy

Report by Ananya Singh

New Delhi, Aug 16: Prime Minister Narendra Modi launched the Vehicle Scrappage Policy on 13th August 2021. It aims to slowly eliminate old and unfit vehicles in an environmentally friendly manner. The deregistering of personal vehicles will start from 1st June 2024 and heavy commercial vehicles from 1st April 2023.

What is the Vehicle Scrappage Policy?
The policy will focus on scrapping vehicles via a system that will automatically test vehicles which have completed the registration period. The registration period is 15 years for a personal car and 10 years for commercial vehicles (trucks, etc.) from the date of purchase. After the expiry date, the vehicle will have to go through a fitness test to be deemed road worthy. The vehicle will not be allowed on road if it fails the test and will be sent to the vehicle scrappage facility. The policy is voluntary. Vehicles will only be scrapped if the owners wish to avail the option.

What is the Fitness Test?
A vehicle will be subjected to various fitness tests (braking, air bags, pollution, etc.) after 15 years to determine the quality of the vehicle, its effect on the environment, and to check if it is safe and fit to run on the road. A valid fitness certificate will be provided after each test and will be good for 5 years, at the end of which it will expire. All commercial vehicles will be required to undergo a mandatory fitness test after 8 years. After that, the test will be taken every 2 years. In case the vehicle fails the fitness test, the fitness as well as registration certificates will not be renewed. Owners will have the option of one re-test after repair, failing which the vehicle will be considered an End-of-Life-Vehicle (EVL).


How is this Policy beneficial?
For every scrapped vehicle, owners will receive a scrap value equivalent to 4-6% of the price offered by the ex-showroom for the new vehicle they intend to buy. Also, no registration fee will be charged on the purchase of the new car. Opting for a new vehicle, and scrapping the older one, will offer low maintenance cost and more savings on fuel as well. On the other hand, owners will have to bear additional costs for renewal of registration certificates and Green Tax.