Vehicle Scrapping Policy to come into force from 1st April 2022: Discard old and polluting vehicles for THESE benefits

New Delhi: The government has issued notification on incentives and disincentives pertaining to Vehicle Scrapping Policy.

In the Vehicle Scrapping Policy, it is proposed to have a system of incentives and disincentives to nudge vehicle owners to discard old and polluting vehicles, which have higher maintenance and fuel consumption costs.        

In this regard, the Ministry of Road Transport and Highways has issued a GSR Notification, 714(E) dated 04.10.2021 in the Gazette of India, which shall come into force from the 1st day of April, 2022. 

As an incentive, there will be waiver of the fee for issue of certificate of registration for a new vehicle, purchased against the authority of the Certificate of Deposit (CoD) issued by a Registered Vehicle Scrapping Facility for a vehicle being scrapped.

As regards disincentives, there will be:

Increase in the fee for conducting fitness test and renewal of fitness certificate for motor vehicles more than 15 years old,

Increase in the fitness certification fee for transport vehicles more than 15 years old, and

Increase in the renewal of registration fee for personal vehicles (non transport vehicles) more than 15 years old.

The Vehicle Scrapping Policy is aimed at creating an eco-system for phasing out unfit and polluting vehicles in an environment friendly and safe manner. The policy intends to create scrapping infrastructure in the form of Automated Testing Stations and Registered Vehicle Scrapping Facilities across the country.