PM Modi Launch Vehicle Scrappage Policy: All Rules, Benefits, Details

Vehicle Scrappage Policy Details| Vehicle Scrappage Policy Benefits| New Vehicle Scrappage Policy Rules, Pdf Download

Hello readers, today we are here with the information related to a new policy launched by the honourable Prime Minister of India Narendra Modi. The name of the policy is Vehicle Scrappage Policy also known as the Voluntary vehicle fleet moderation programme. You might have various questions in your mind like what is the policy? How is it beneficial for us? How is it works? and many more. The answer to all your questions is available in this article. We try to provide all the significant information in respect of this policy.

Vehicle Scrappage Policy Launch

In India, there is more than 1 crore vehicle running without fitness. These vehicles are creating pollution, their fuel efficiency is near to zero which increases fuel expenses and is not even compatible with road safety norms. Considering all these facts Vehicle Scrappage Policy has been launched on 13 August 2021 Friday by Prime Minister Narendra Modi. The policy has been launched in Gujarat in the presence of Gujarat Chief Minister Vijay Rupani, Transport Minister Ranchhodbhai Chanabhai Faldu and other persons. This policy is a significant milestone in India’s development journey. 

PM Modi Launch Vehicle Scrappage Policy
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Vehicle Scrappage Policy

Under this policy, the old registered vehicles that are unfit and polluting will phase out in an environmentally friendly manner. The government is going to set up automated testing stations at the district level to test the vehicles whether are fit or unfit as well as scrapping centres will also set up. The primary criteria of scrapping the vehicles are fitness, not age. This policy is very beneficial and useful for all stakeholders. In a tweet, NM Modi addressed the youths and start-ups to join the initiative. 

Short Details of Article

  • Name of the Scheme: Vehicle Scrappage Policy 
  • Launched by: Prime Minister Narendra Modi
  • Launched on: 13 August, 2021 Friday
  • Objective: to phase out old and unfit vehicle
  • Launched for: Vehicle Owners, Manufacturers & Investors 
  • Official website: update soon

Vehicle Scrappage Policy Implementation

For successful implementation of this policy an amount of Rs. 10000 crore is required. The government is going to set up 450-500 automated testing stations (ATSs) and 60-70 registered vehicle scrapping facilities (RVSFs) across the country. This presents a very attractive opportunity for investors. MoU has been already signed with investors while launching the scheme. There is a total of 7 agencies that are signing MoUs with the government out of which 6 are from Gujarat and one is from Assam.  A single window clearance portal will develop for registration applications for ATSs & RVFSs. The target of the policy is to scrapping more than 1 crore vehicles that are not re-registered or unfit. The vehicle will consider unfit or end of life if it fails the fitness test. For heavy commercial vehicles, a fitness test will be mandatory from the effect of 1st April 2023. For all the other commercial vehicles and personal vehicles, a fitness test is proposed to be mandated in the phases from 1st June 2024 onwards.

Objective of Policy

The main aim behind launching this policy is to create wealth out of waste. With the implementation of this policy, the government is going to scrap the old vehicles in such a way so that the best use of them could be possible. This policy plays a vital role in vehicle population modernisation and removing old vehicles from the roads in a scientific manner. This policy is connected to cleanliness and self-dependence too.

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Feature/Benefits of Vehicle Scrappage Policy

With the successful implementation of this policy, the following benefits for the stakeholders

  • Develop the automobile industry of our country.
  • Increase the manufacturing of new vehicles
  • Increase the savings 
  • Reduce the cost of the raw material used to manufacture vehicles about 40% if the scrapping is done in a proper way
  • Increase the raw material availability for automobile industry, steel industry and electrical industry
  • The scrap vehicle material like- aluminium, copper, steel, rubber, plastic etc will reuse which result in less cost in new product manufacturing
  • Increase the products export of automobile industry
  • Reduce the pollution in environment
  • Create job opportunities for about 35000 people directly
  • Increase the revenue of the government as well
  • Improve road passenger and vehicular safety
  • Improve fuel efficiency and reduce maintenance cost for vehicle owners
  • Formalize the current informal scraping industry
  • The vehicle owners will get a certificate of deposit while depositing old vehicle for scrapping. Those who have this certificate will get several benefits as mentioned further:
  • Need not to pay registration fee to buy a new vehicle 
  • You will also get rebate of 25% in road tax
  • 5% reduction in cost of new vehicles 

Vehicle Scrappage Policy Rules

  • Vehicle’s scrapping will not be made only on the basis of the age of the vehicle
  • Scientific testing will be made at ATSs 
  • Only unfit vehicles will be scrapped in eco-friendly manner
  • Commercial vehicle of 15 years age and personal vehicles of 20 years of age will undergo testing.
  • For heavy commercial vehicle, fitness test will be mandatory from the effect of 1st April, 2023
  • For all the other commercial vehicles and personal vehicles, fitness test is proposed to be mandated in the phases from 1st June 2024 onwards.