Vehicle Scrapping Policy: Check List of incentives & disincentives

The Union Transport Ministry on October 5, 2021 issued a list of incentives and disincentives of the Vehicle Scrapping Policy. The list has been issued to encourage the vehicle owners to discard their old polluting vehicles that are high maintenance and have a higher fuel consumption cost. 

Union Finance Minister Nirmala Sitharaman had first announced the Vehicle Scrapping Policy during her budget speech in February 2021. The policy was introduced to bring transformational changes in the automobile sector by phasing out old, unfit and polluting vehicles. 

Under the vehicle scrapping policy, all personal vehicles will have to undergo fitness tests in automated centres after 20 years and commercial vehicles will undergo the test after 15 years. 

Vehicle Scrapping Policy Incentive 

The Ministry informed that as an incentive of the vehicle scrapping policy, there will be be fee waiver 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.

Vehicle Scrapping Policy Disincentives 

The disincentives of the vehicle scrapping policy include:

1. Increase in fee for conducting fitness test and renewal of fitness certificate for motor vehicles older than 15 years.

2. Increase in fee of fitness certificate for transport vehicles older than 15 years. 

3. Increase in fee for renewal of registration for personal vehicles (non-transport vehicles) more than 15 years old.

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