The New Vehicle Scrappage Policy has been implemented to reduce pollution by removing old vehicles from the roads and encouraging the purchase of new, environmentally friendly vehicles.
Policy Details:
- Incentives:
- For personal vehicles, owners can receive up to a 25% discount on vehicle price or road tax after selling their old vehicles for scrap.
- For commercial vehicles, the discount is set at 15%.
- Participating States:
- Multiple states, including Bihar, Madhya Pradesh, Uttar Pradesh, Haryana, Karnataka, Maharashtra, Gujarat, Punjab, and Kerala, have adopted these incentives to phase out old and environmentally harmful vehicles.
Fitness Testing & Rules:
- Testing Requirements:
- Commercial vehicles older than 15 years and passenger vehicles older than 20 years must undergo fitness and emission tests to determine roadworthiness.
- Automated testing stations and scrapping facilities will be introduced in phases.
- Vehicle Age Rules:
- Motorcycles: Seven-year or 120,000 km lifespan.
- Light Commercial Vehicles (LCVs): Six and a half years or 150,000 km lifespan.
- Heavy Commercial Vehicles (HCVs): 10 years or 400,000 km lifespan.
- Other vehicles have a maximum age limit of 15 years, beyond which they must be scrapped.
Current Implementation Status:
- Since the policy was introduced in 2021, about 70,000 old vehicles (many owned by government agencies) have been voluntarily scrapped.
- In Delhi, vehicles older than 10 years (diesel) and 15 years (petrol) are automatically deregistered and scrapped, following the state’s strict regulations.
State-Level Incentives:
- Karnataka:
- Fixed discount on road tax based on vehicle price.
- Vehicles costing over Rs. 20 lakh receive Rs. 50,000 off.
- Uttarakhand:
- Offers a 25% concession or Rs. 50,000, whichever is lower, on private vehicles.
- Puducherry:
- Offers a 25% concession or Rs. 11,000, whichever is lower.
- Haryana:
- Provides a 10% discount or 50% of scrap value for private vehicles.
Conclusion: In addition to tax incentives, vehicle owners participating in the scrappage program receive a scrap value equivalent to 4-6% of the new vehicle’s ex-showroom price. These measures aim to facilitate a smooth transition to newer, cost-effective vehicles while significantly reducing environmental impact.