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Vehicle Scrappage Policy launched by PM Modi: Here’s a look at its key features

Prime Minister Narendra Modi said the policy will provide a new identity to the mobility and auto sector in India. We take a look at some of its key features.

vehicle scrappage policy key featuresBodies of cars at scrap market at Mayapuri in New Delhi. (Express photo by Praveen Khanna)

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.

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-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.

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-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.

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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.

First published on: 13-08-2021 at 18:04 IST
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