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DNA Explainer: All you need to know about Vehicle Scrappage Policy of Modi government

The criteria for a vehicle to be scrapped is primarily based on fitness of vehicles through Automated Fitness Centres in case of commercial vehicles.

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Union Road Transport and Highways Minister Nitin Gadkari announced the Vehicle Scrappage Policy in Lok Sabha on Thursday, according to which commercial vehicles will be de-registered after 15 years if they fail to get a fitness certificate. While, private vehicles will be de-registered after 20 years if found unfit or in case of a failure to renew registration certificates  He added that under the new vehicle scrappage policy, owners of old vehicles will get strong incentives to scrap old and unfit vehicles.

"In the interest of a clean environment and rider and pedestrian safety, the Ministry of Road Transport and Highways is introducing the 'Voluntary Vehicle-Fleet Modernization Program' or 'Vehicle Scrapping Policy', which is aimed at creating an eco-system for phasing out of unfit and polluting vehicles," said the Union Minister in a suo-moto statement."

"The Ministry shall promote setting up of AFCs on a PPP model by state government, private sector, automobile companies etc.," he said. All vehicles of the central government, state government, municipal corporations, Panchayats, State Transport Undertakings, Public Sector Undertakings (PSUs) and autonomous bodies with the Union and state governments may be de-registered and scrapped after 15 years from the date of registration. The tentative date for scrappage of government and PSUs vehicles above 15 years of age is April 1, 2022. The new scrappage policy was proposed by Finance Minister Nirmala Sitharaman during her Budget speech last month.

What are the objectives of the Vehicle Scrappage Policy?

1) To reduce the population of old and defective vehicles.
2) To achieve a reduction in vehicular air pollutants to fulfill India's climate commitments.
3) Improve road and vehicular safety.
4) Achieve better fuel efficiency.
5) Formalize the currently informal vehicle scrapping industry.
6) Boost the availability of low-cost raw materials for automotive, steel and electronics industries.

What are the criteria for a vehicle to be scrapped?
The criteria for a vehicle to be scrapped is primarily based on the fitness of vehicles through Automated Fitness Centres (AFCs) in case of commercial vehicles and non-renewal of Registration in case of private vehicles.

An advisory has been issued to all vehicle manufacturers to offer a 5 per cent discount while selling a new vehicle against a scrapping certificate, Gadkari said in the Lok Sabha. 

(With agency inputs)

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