Vehicle Scrapping Policy: The Ministry of Road Transport and Highways, Government of India, released a list of incentives and disincentives for the Vehicle Scrapping policy announced earlier this year. These are aimed at encouraging the owners of vehicles to discard their older vehicles that have higher maintenance and fuel requirements. The Central Motor Vehicles (23rd Amendment) Rules, 2021, will come into effect from April 1, 2022. 

The Ministry of Road Transport and Highways issued a list of incentives and disincentives pertaining to the Vehicle Scrapping Policy on Tuesday. These incentives and disincentives combined are aimed at encouraging vehicle owners to discard their old and polluting vehicles, which have higher maintenance and fuel consumption costs.

As an incentive, there will be a waiver of the fee for issue of the 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,” read the press statement by the ministry.
The disincentives include 1). Increase in the fee for conducting fitness tests and renewal of fitness certificates for motor vehicles more than 15 years old. 2). Increase in the fitness certification fee for transport vehicles more than 15 years old. 3). Increase in the renewal of registration fee for personal vehicles (non-transport vehicles) more than 15 years old.

The voluntary Vehicle Scrapping policy was announced during the Union Budget 2021, with the objective of phasing out old and unfit personal vehicles after 20 years, and commercial vehicles after 15 years, post a fitness test in automated centers. The policy makes it compulsory for heavy vehicles to undergo fitness tests from April 2022.