Cabinet approves proposal for scrapping old vehicles, policy to be out soon: Union Minister

The Road Transport and Highways Minister Nitin Gadkari reportedly said that he cleared a cabinet note on the proposed vehicle scrapping policy, while the finance ministry approved it. So, a final call should be taken on the policy soon, said the Union Minister, adding that it will be applicable on two and three-wheelers as well.

The minister had earlier said that India could emerge as a hub for automobile manufacturing on implementation of this policy, as the key raw materials like steel and aluminium generated from scrapping would be recycled. This would also bring down the automobile prices by 20 per cent to 30 per cent India, said Mr. Gadkari.

In May 2016, the government had floated a draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) that proposed to take 28 million decade-old vehicles off the road.

A committee of secretaries (CoS), later on, recommended to the ministry to redesign the scheme for greater participation of states with partial support from the Centre.

On July 26, 2019, the ministry proposed amendment to motor vehicle norms to allow scrapping of vehicles older than 15 years in a bid to spur adoption of electrical vehicles.

The government also proposed renewal of fitness certificates for vehicles older than 15 years every six months instead of the current timeframe of one year.

The newly purchased motor vehicles are proposed to be exempted from the registration certificate and assignment of new registration mark fees on producing scrapping certificate of the previously owned vehicle of the same category issued by the authorised scrapping centre/agency.