The policy will come into effect from June 2024. Personal vehicles older than 20 years will be de-registered from June 1, 2024, provided they fail the ‘fitness test’. Based on the fitness test, registration certificates would be renewed. If the registration certificates have not been renewed, the vehicle would be de-registered
The same is applicable with heavy commercial vehicles that are older than 15 years. They will be deregistered from April 1, 2023.
The scrappage policy, launched in India on Friday (August 13, 2021), will give a new dimension to the automobile sector. This is a well-drafted policy that creates a win-win situation for all the stakeholders.
The policy will come into effect from June 2024. Personal vehicles older than 20 years will be de-registered from June 1, 2024, provided they fail the ‘fitness test’. Based on fitness tests, registration certificates would be renewed. If the registration certificates have not been renewed, the vehicle would be de-registered.
The same is applicable with heavy commercial vehicles that are older than 15 years. They will be deregistered from April 1, 2023.
The policy has the power to generate employment, boost investment, and positively impact the environment due to phasing out old vehicles.
Launching the policy Indian Prime Minister Narendra Modi said the scrappage policy would generate more than ₹10,000 crore investments, creating thousands of jobs. Finance minister Nirmala Sitharaman had announced the policy in her February budget for FY22 to phase out unfit and polluting vehicles.
Following features of the National Automobile Scrappage Policy every vehicle should take note of:
- Commercial and personal vehicles that are more than 15 and 20 years old, respectively, have to undergo a mandatory fitness test.
- The policy underlines mandatory scrapping of all four-wheel government vehicles that are more than 15 years old.
Announcing the policy, Union Transport Minister Nitin Gadkari had said in March it will bring investments worth more than Rs 10,000 crore and create up to 50,000 jobs
- The fitness test will be done at government-certified fitness centres. For this, the government would set up fitness centres all over India. Appointment for tests can be made online, tests would be done physically, and reports will be generated online.
- If found unfit, the vehicle has to go for scrapping that can be done anywhere in the country, regardless of the place of vehicle registration.
- Announcing the policy, Union Transport Minister Nitin Gadkari had said in March it will bring investments worth more than Rs 10,000 crore and create up to 50,000 jobs.
- There are incentives attached with the policy for those who opt for scrappage of their vehicles. The scrap value for the old vehicle is likely to be around 5-6 per cent of the price of a new vehicle.
- Another incentive rebate on road tax up to 25 per cent for new personal vehicles, and 15 per cent for new commercial vehicles.
- There is a clause of a 5 per cent discount against the scrapping certificate.
- On the purchase of a new vehicle against the scrapped vehicle, the registration fees for purchasing a new vehicle may also be waived.
