Vehicle Scrapping Policy 2021: Govt announces incentives and disincentives

The Vehicle Scrapping Policy proposes a system of incentives and disincentives to encourage vehicle owners to get rid of old and polluting automobiles that cost more to maintain and consume more fuel.

In this regard, the Ministry of Road Transport and Highways has published a GSR Notification in the Indian Gazette, which will take effect on April 1, 2022.

A fee waiver for the issuance of a certificate of registration for a new vehicle purchased under the authority of a Certificate of Deposit (CoD) issued by a Registered Car Scrapping Facility for a vehicle being scrapped will be offered as an incentive.

As regards disincentives, there will be:

Fees for conducting fitness tests and renewing fitness certificates for motor vehicles older than 15 years have been raised.

An increase in the charge for certifying the fitness of transport vehicles older than 15 years, as well as

Renewal fees for personal automobiles (non-transport vehicles) older than 15 years have been raised.