Vehicle Scrappage Policy in India: Criteria and incentives explained
With the Bharat Stage 6 Phase 2 emission norms coming into effect in India this April, automakers have been introducing their updated models. So, how will unfit vehicles be phased out from our roads? Well, the Vehicle Scrappage Policy introduced in 2021 will deal with them. From mandatory fitness tests to incentives for old vehicle owners, it covers many aspects. Here are more details.
Objectives of Vehicle Scrappage Policy
The goals of the policy include pollution reduction by scrapping vehicles with invalid fitness/registration certificates and generating employment by boosting auto sector sales. Improvements to fuel efficiency, better road/vehicular safety, as well as lower maintenance costs for vehicle owners are also on the agenda. The Centre also wants to formalize the informal vehicle scrappage industry and boost the availability of low-cost raw materials.
How does registration depend on fitness certificate?
Vehicles are supposed to be scrapped based on fitness, irrespective of age. For commercial vehicles (CVs), registration is linked to the validity of fitness certificates. CVs have to undergo tests every two years for the first eight years of registration and annually thereafter. For private vehicles, the first registration has a 15-year validity. After that, a valid fitness certificate is necessary for registration renewal.
What are the incentives for scrapping vehicles?
There are many incentives for scrapping vehicles. Firstly, the scrap value for an old vehicle given by the scrapping center is roughly 4-6% of a new vehicle's ex-showroom price. Secondly, the registration fees are waived while purchasing new models, and there are concessions on the motor vehicle tax. Finally, automakers have been urged to provide a 5% discount on the purchase of new vehicles.
What kind of vehicles can be scrapped?
Vehicles whose registration and fitness certificates are not in order can be scrapped. Any two/four-wheeler damaged due to natural disasters, accidents, or riots, whose owner self-certifies it as scrap is also eligible. Auctioned/impounded vehicles by any enforcement agency, obsolete models, damaged test vehicles and prototypes certified by the manufacturer, and unregistered units are also eligible for scrappage.
How to apply for scrappage scheme?
Visit the National Single Window System portal (https://www.nsws.gov.in), hover over "Government Schemes," and select "Vehicle Scrapping Policy." Tap "Apply for Scheme Related Approvals," fill in the details, and press "Add to Dashboard." Next, click "Apply SRF" to fill out the "State Registration Form" and click on "Submit." You will be redirected to the dashboard. You can check the application status on the same website.
