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Vehicle Scrappage policy to be applicable from April 1, all you need to know

While the scrappage policy aims to remove older vehicles to reduce pollution and increase road safety, it also gives a boost to the automobile industry by increasing new vehicle sales. 

Vehicle Scrappage policy to be applicable from April 1, all you need to know

The new vehicle scrappage policy that aims to take off older vehicles from the road in order to reduce pollution and accidents will be applicable starting today (April 1). Under the scrappage policy, vehicle owners will be able to scrap their old vehicles once the registration expires after 15 years. In Delhi, though, the registration expires after 10 years for diesel and 15 years for petrol vehicles. 

While you can't re-register the old vehicles in Delhi, you can apply for re-registration of old vehicles in other parts of India, but the vehicle will have to undergo fitness test through automated centres designated by the government. Also, the re-registration fees will be as high 8 times than the new vehicle registration, discouraging owners to go for renewal.

Also read: Tata, Hero among other automakers to hike vehicle prices from April 1

On the other hand, the scrappage policy aims to remove older vehicles and give a boost to the automobile industry by paying incentives on scrapping. From 2023, all types of heavy commercial vehicles will have to undergo a mandatory fitness test. At the same time, this policy will be applicable for private and other groups of vehicles from June 2024. Here's an understanding on the vehicle scrappage policy - 

What is Vehicles Scrappage Policy?

- Vehicles that are older than the prescribed age in the country will have to undergo their fitness test

- The test will be based on a number of checks like engine condition of the vehicles, their emission status and fuel efficiency, safety

- Registration of vehicles that fail in the test will be cancelled

- Such vehicles will be scrapped

- According to the vehicle scrap policy, commercial vehicles older than 10 years and private passenger vehicles older than 15 years will have to give this fitness test

- This will be necessary for all old vehicles coming in this limit.

- On passing the fitness test, it will be allowed to run for a few days by changing from the IC engine.

Also read: Yet another electric scooter catches fire, 3rd such incident after Ola and Okinawa

Online registration facility

In this, any person, firm, institution, trust will be able to apply by visiting the website www.ppe.nsws.gov.in/scrappagepolicy. Other necessary documents, including character certificate will also have to be uploaded on a stamp of Rs 100. After which further action will be taken.

What happens if the fitness test fails?

The Vehicle Scrap Policy is actually the Voluntary Vehicle Modernization Program (VVMP). In such a situation, if the vehicle fails in the fitness test, then he will have to deposit his car in 60-70 registered scrap facilities across the country and will get a scrap certificate issued from there which will be valid for 2 years.

Discount on new car from scrap value of used car

- In lieu of giving the old car, the customer will get a deposit certificate

There will be many benefits on buying a new car

- Discount up to 5% of the ex-showroom price at the time of buying a new vehicle in lieu of certificate of deposit for discarding old vehicles.

No registration fee will have to be paid on the new vehicle

State Governments can give road tax rebate up to 25% for private vehicles and 15% for commercial vehicles.

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