Prime Minister Narendra Modi launched the much-awaited vehicle scrappage policy today. He said that the new policy will help in phasing out the unfit and polluting vehicles across the country and promote a circular economy. Urging the youth and start-ups to join this program, the prime minister said the policy will provide a new identity to the mobility and auto sector in India. Modi said that the vehicle scrappage policy will provide a new identity to the mobility and auto sector in India and it will play a major role in modernising the vehicular population on our city roads and will also help in reducing pollution in the cities. Here's a look at the key features of the new policy: -When an old vehicle is scrapped, the owner of such vehicle will receive the scrap value given by the scrapping centre, which is around 4-6 per cent of the ex-showroom price of the new vehicle they buy. -The scheme will provide incentives to the owners of the old vehicles to scrap their unfit vehicles through registered scrapping centres, which shall provide the owners with a scrapping certificate. -The policy advises automobile manufacturers to provide a discount of 5 per cent on the purchase of a new vehicle against the scrapping certificate. -The new policy also advises offering a road-tax rebate of up to 25 per cent for personal vehicles and up to 15 per cent for commercial vehicles. -The new vehicle scrappage policy proposes Private Vehicles to be de-registered after 20 years if found unfit or in case of a failure to renew registration certificate. As a disincentive measure, increased re-registration fees will be applicable for private vehicles 15 years onwards from the date of initial registration. For commercial vehicles, the de-registration process starts after 15 years in case of failure to get the fitness certificate. - In addition, the registration fees may also be waived for the purchase of a new vehicle against the scrapping certificate. - Mandatory fitness testing of commercial vehicles is likely to start from April 1, 2023, while for personal vehicles it is expected to begin from June 1, 2024, in a phased manner. The Ministry of Road Transport and Highways (MoRTH) earlier this year had also introduced a draft notification proposing a hike in the renewal fees of the RC of 15-year-old vehicles.
