The Ministry of Road Transport and Highways (MoRTH) has said that a total of 11 states/Union Territories have gotten on-boarded onto the National Single Window System (NSWS) for Voluntary Vehicle-Fleet Modernization Program (V-VMP) to attract private investment in the vehicle scrapping ecosystem. These 11 states that have joined the NSWS are Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Uttarakhand, Gujarat, Karnataka, Rajasthan, Assam, Chandigarh, Odisha and Goa
Conveying more details around the development, the ministry further said in a statement that applications of 117 investors who have shown interest for Registered Vehicle Scrapping Facilities (as on 14th November) are under process. Of these, 36 applications have been approved by the respective state governments.
Vehicle Scrappage Policy
V-VMP or Vehicle Scrappage Policy, has came effect from 1st April, 2022, primarily aims to develop an ecosystem for phasing out of unfit and polluting vehicles in an eco-friendly way and replace them with modern and new vehicles on Indian roads. Phasing out unfit and polluting vehicles will assist the country in achieving a lower carbon footprint in the country.
The policy was announced in country’s Union Budget 2021-22. It provides for fitness tests for personal vehicles after 20 years, while for commercial vehicles, test is required after the completion of 15 years. The vehicles will be scrapped if they fail the fitness test. On the other hand, the policy also provides the owners of the vehicles certain benefits for scrapping their old vehicles. Example – under the new policy, Centre has directed that states and UTs will extend up to 25% rebate on road tax for vehicles that are purchased after scrapping old vehicles.
Aim of the Vehicle Scrappage Policy 2021
Some key takeaways of the vehicle scrappage scheme are as follows
– It aims at reducing the problem of pollution by scrapping of old unfit vehicles, which are responsible for harmful emissions
– The policy is such that it improves passenger, road and vehicular safety.
– Generate employment in the automobile sector
– Motivate people to go green and become environmentally aware
– Formalise the current highly informal vehicle scrappage industry
– Improving fuel efficiency & lowering maintenance costs for vehicle owners
– Increase availability of low-cost raw materials for automotive, steel and electronics industry
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