Ministry of Road Transport and Highways has issued a list of incentives and disincentives pertaining to the Vehicle Scrapping Policy.
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These incentives and disincentives combined are aimed at encouraging the vehicle owners to discard their old and polluting vehicles having higher maintenance and fuel consumption costs.
As an incentive, there will be waiver of the fee for issue of certificate of registration for a new vehicle, purchased against the authority of the Certificate of Deposit (CoD) issued by a Registered Vehicle Scrapping Facility for a vehicle being scrapped.
The disincentives include
1) Increase in the fee for conducting fitness test and renewal of fitness certificate for motor vehicles more than 15 years old.
2) Increase in the fitness certification fee for transport vehicles more than 15 years old.
3) Increase in the renewal of registration fee for personal vehicles (non-transport vehicles) more than 15 years old.
Presenting the Union Budget 2021-22, Finance Minister Nirmala Sitharaman on 1st February 2021 announced a voluntary vehicle scrapping policy to phase out old and unfit vehicles under which the personal vehicles will undergo a fitness test in automated centres after 20 years while the commercial vehicles will undergo the test after 15 years.
The Vehicle Scrapping Policy is aimed at creating an eco-system for phasing out unfit and polluting vehicles in an environment friendly and safe manner. The policy intends to create scrapping infrastructure in the form of Automated Testing Stations and Registered Vehicle Scrapping Facilities across the country.