Vehicle Scrappage Policy Announced By PM Modi

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Prime Minister Narendra Modi, during the ‘Investors Summit for setting up Vehicle Scrapping Infrastructure’ in Gujarat launched the Voluntary Vehicle-Fleet Modernization Program (VVMP), which is more commonly known as the Vehicle Scrapping Policy.

The vehicle scrappage policy will attract investments of around INR 10,000 crore to set up 450-500 Automated Testing Stations (ATS) and 60-70 Registered Vehicle Scrapping Facilities (RVSF) across the country. Also, a single window clearance portal will be developed where the applications for ATS and RVSF will be catered through a single portal within 60 days.

A vehicle will be declared as End-of-Life or unfit if it fails the automated fitness test, the allowed retest and reinspection test ordered by authorities. Mandatory automated fitness testing for Heavy Commercial Vehicles (HCVs) is to be effective from April 1, 2023. For all the other categories of vehicles, fitness testing through ATS is proposed to be mandated in a phased manner from June 1, 2024 onwards.

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The PM mentioned the benefits of the policy. The first benefit will be that a certificate will be given on scrapping the old vehicle. Whoever has this certificate will not have to pay any money for registration on the purchase of a new vehicle. Along with this, they will also be given some exemption in road tax. The second benefit will be that the maintenance cost, repair cost, fuel efficiency of the old vehicle will also be saved in this. The third benefit is directly related to life. There will be some relief from the high risk of road accidents due to old vehicles and old technology. Fourth, it will reduce the harmful impact of pollution on our health.

Mr. Modi also said that the Vehicle scrapping will help phase out unfit and polluting vehicles in an environment-friendly manner. The aim is to create a viable #circulareconomy and bring value for all stakeholders while being environmentally responsible. Modernity in mobility not only reduces the burden of travel and transportation, but also proves helpful for economic development

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Nitin Gadkari, Minister of Road Transport & Highways suggested to the Gujarat Chief Minister that one district should have at least one registered vehicle scrapping industry and one automated fitness certificate centre. He  also stated that his ministry has requested automobile companies to give a 5% discount to those who had deposited their old vehicles for scrapping.

Mr. Gadkari said – “There is no scrapping infrastructure in our neighbouring countries. We can think of bringing old vehicles from those countries to the Kandla port. I urge (Gujarat CM) Vijay Rupani to see if the state government can develop an industrial cluster in Kandla. If that happens, scrap material from all over the world would come here for recycling. The PM has requested us to create an integrated scrapping hub in Alang, where ships are being recycled. Now, we will try to make it a scrapping hub. Our dream is to make India the scrapping hub of South-East Asia by bringing old vehicles of neighbouring countries for recycling.”

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