What is the Vehicle Scrapping Policy?

The Vehicle Scrapping Policy is a significant initiative by the Indian government aimed at regulating the scrapping of old vehicles. The policy mandates the scrapping of all government vehicles that are older than 15 years. This initiative has been introduced with the objective of reducing pollution, enhancing fuel efficiency, and promoting road safety.

The Vehicle Scrapping Policy is discussed in detail in the Sansad TV Perspective programme, hosted by Teena Jha. The guests on the show include Mahmood Ahmad, Additional Secretary, Transport, Ministry of Road Transport & Highways, P.K. Banerjee, Executive Director, Society of Indian Automobile Manufacturers, and Ganpathy Subramaniam, Senior Journalist. They discuss various aspects of the policy, from its introduction and significance to existing issues and the way forward.

Understanding the Vehicle Scrapping Policy

The Vehicle Scrapping Policy, announced in the Union Budget 2021-22, mandates that all vehicles owned by central and state governments, including buses owned by transport corporations and public sector undertakings, that are older than 15 years will be de-registered and scrapped. However, the rules do not apply to specialized vehicles used for operational purposes for the defence of the country and for the maintenance of law and order and internal security.

The policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles will require it after 15 years. States and Union Territories will provide up to 25% tax rebate on road tax for vehicles that are purchased after scrapping old vehicles. For more information on the policy, you can refer to this comprehensive guide: Vehicle Scrappage Policy – Explained for UPSC & Govt. Exams

The Significance of the Vehicle Scrapping Policy

The Vehicle Scrapping Policy is a crucial step towards a greener future. It addresses environmental concerns arising from the scrapping of old vehicles, which is currently largely done by the informal sector. The policy is expected to streamline the process and ensure that scrapping is done in a scientific and eco-friendly manner.

Several advantages of the policy include reducing environmental pollution, enhancing fuel efficiency, improving road safety, and boosting manufacturing activity. It also brings together all stakeholders, such as material collectors, recyclers, and automobile manufacturers.

Challenges in the Implementation of the Vehicle Scrapping Policy

While the Vehicle Scrapping Policy offers several benefits, its implementation has been slow. There are very few scrapping centers in the country, and a majority of the scrappage is done in a haphazard and hazardous manner. There is also a lack of clarity in the policy about incentivization and how states will provide rebates and incentives.

The Way Forward

The successful implementation of the Vehicle Scrapping Policy depends on the active involvement of states, as most of the subjects fall under the state and concurrent list of the seventh schedule of the constitution . The automobile industry also needs to step forward, as more scrappage will result in a boost to their business and, in turn, increase the tax revenues of the central and state governments.

For a comprehensive understanding of various important topics, visit our Sansad TV Perspective series .

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